Ranking Member of Parliament’s Mines and Energy Committee, John Jinapor, has cautioned that Ghana could experience extensive power outages by September unless a debt exceeding $12 million owed to the West Africa Gas Pipeline Company (WAPCo) is settled.
He further explained that WAPCo is considering halting gas supplies from Nigeria by September 6 if the debt remains unpaid.
“So, that is a threat we are facing, if we do not pay this 12 million by the 7th of September, they would shut down the pipeline completely for both gas from Nigeria and reverse flow of gas from the West to Tema”.
The Minority in Parliament has announced its intention to summon the Ministries of Energy and Finance to address pressing questions about the escalating judgment debt issue between Ghana and the oil giant, Trafigura.
This development follows Trafigura’s seizure of Regina House, one of Ghana’s key commercial properties in London, due to the government’s failure to settle a $134 million judgment debt.
For the past four years, Trafigura has struggled to obtain payment from the Ghanaian government after the sudden termination of a power purchase agreement led to the debt. As a result, Trafigura secured another judgment in U.S. courts, which imposed an additional mandatory interest of $111.4 million, adding to the amount Ghana still owes.