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Home Business Extractives/Energy

WAPCo Cuts Gas Supply to Ghana Over $20M Debt 

March 12, 2025
in Extractives/Energy
Reading Time: 5 mins read
0

The West African Gas Pipeline Company (WAPCo) has reduced its gas supply to Ghana to 60 million standard cubic feet per day (mmscfd) due to an outstanding debt of $20 million, Hon. John Jinapor, Minister for Energy and Green Transition has disclosed. 

Speaking at a media briefing on Wednesday, March 12, the Minister assured the public that despite the supply cut, there would be no load shedding. 

Energy Minister Hon. John Jinapor confirmed that Ghana is currently receiving reduced gas volumes from WAPCo due to the outstanding financial obligation. 

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“As we speak today, WAPCo has curtailed gas supply to 60mmscfd because of an outstanding liability.” 

Hon. John Jinapor, Minister for Energy and Green Transition

WAPCo, a key supplier of natural gas to Ghana, transports gas from Nigeria via the West African Gas Pipeline (WAGP). The reduction in supply comes at a time when Ghana is already facing challenges in its energy sector, raising concerns about the stability of power generation. 

WAPCo offshore pipeline
WAPCo offshore pipeline

Despite the gas supply reduction, the Energy Minister dismissed claims of load shedding, emphasizing that there was no need to publish a load-shedding timetable. 

“This is the official report I get on a daily basis, and so we are not shedding load.

“There is no load shedding, so we cannot publish a load-shedding timetable when we are not shedding load.” 

Hon. John Jinapor, Minister for Energy and Green Transition

Load shedding has been a major concern for Ghanaians, especially given past experiences of power crises. However, Jinapor maintained that the situation was under control. 

Challenges with Ghana’s Energy Transmission System 

Hon. John Jinapor, Minister for Energy and Green Transition
Hon. John Jinapor, Minister for Energy and Green Transition

Hon. Jinapor acknowledged the broader challenges facing Ghana’s energy sector, particularly weaknesses in the power transmission infrastructure. He pointed out that the country’s weak transmission grid has made the system vulnerable to disruptions. 

“Admittedly, we have inherited a very weak system. The transmission grid is very weak, and so the least opportunity, you will see some areas going off, which means that we need to strengthen the grid.

“We need to improve the primary substations, inject more substations, especially around the Kumasi enclave.” 

Hon. John Jinapor, Minister for Energy and Green Transition

The government assured citizens that steps are being taken to resolve the situation. Jinapor emphasized the need for patience as efforts are being made to improve the country’s energy infrastructure. 

“We appeal to Ghanaians to bear with us. It is a very tight situation we have inherited but requires a bit of time to be able to resolve.” 

Hon. John Jinapor, Minister for Energy and Green Transition

The Minister’s call for patience suggests that the government is working on addressing both the financial obligations to WAPCo and the broader structural issues affecting Ghana’s energy supply. 

If the $20 million debt to WAPCo is not settled promptly, there is a risk that gas supply could be further reduced or even halted, which would significantly affect power generation.  

WAPCo
WAPCo

Natural gas is a crucial component of Ghana’s energy mix, and any disruptions could put additional pressure on alternative energy sources, potentially leading to power shortages. 

The government will need to act swiftly to settle the outstanding payments and secure the necessary gas supply to sustain the country’s energy needs. 

The reduction in gas supply by WAPCo highlights the financial and operational challenges Ghana’s energy sector is currently facing.  

While the Energy Minister has assured that there will be no load shedding, the situation underscores the urgent need for investment in energy infrastructure and improved financial management. 

As Ghana navigates these energy challenges, the government’s ability to resolve the debt issue and strengthen the transmission grid will be critical in ensuring a stable and reliable power supply for businesses and households across the country. 

READ ALSO: President Mahama to Engage with SOE CEOs to Champion Reforms 

Tags: Energy Sector DebtGhana Energy CrisisGhana power transmissionLoad sheddingWAPCo
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