Business News of Thursday, 9 January 2025

Source: www.ghanaweb.com

'Dumsor': WAPCo agrees to postpone the pigging of its pipeline to 2 weeks

Ghanaians can heave a sigh of relief as WAPCo postpones pigging exercise Ghanaians can heave a sigh of relief as WAPCo postpones pigging exercise

In a surprising turn of events, the West African Gas Pipeline Company (WAPCo) has agreed to delay the pigging of its pipeline by 2 weeks in order to prevent the imminent load shedding.

This decision came after a meeting with the technical committee established by Chief of Staff Julius Debrah and directed by the president on January 8, 2025.

The Ghana Grid Company (GRIDCo) had previously warned of a potential power crisis due to inadequate fuel supplies for thermal plants. If the planned WAPCo maintenance had proceeded, it would have negatively impacted the country's electricity generation.

GRIDCo estimated that Ghana would need nearly $90 million to purchase liquid fuel, such as light crude oil, to operate thermal plants in Tema and meet the increasing demand for electricity.

The emergency meeting convened by the government aimed to find solutions to avoid the widely feared "dumsor."

The postponement allows the government time to assess the situation thoroughly and consider alternative fuel options or implement a load shedding plan in the worst-case scenario.

GRIDCo's report on the upcoming exercise indicated that a total of 180 million standard cubic feet per day (mmscfd) of gas is consumed by various thermal plants in Tema.

During the pigging period, the WAGP lateral in Tema will be closed, resulting in no gas supply for these thermal plants unless they can operate on liquid fuel. This will necessitate the shutdown of several gas-fired plants in Tema, reducing overall generation capacity.

In contrast, thermal plants in the Western Region, such as TAPCo, TICo, Karpower, and Twin City, consume approximately 230 mmscfd of natural gas.

Additionally, the Anwomaso Thermal Power Station in Kumasi and Genser Energy Power Stations collectively consume 75 mmscfd of gas. Non-power sectors in the West account for an additional 35 mmscfd.

With domestic gas production from ENI and Tullow providing a total of 345 mmscfd, the region's supply should be adequate to meet demand, even with the 80-90 mmscfd delivered from Nigeria via the WAGP.

To facilitate the pigging exercise, gas production from ENI and Tullow will need to be adjusted to balance supply and consumption.

GRIDCo also plans to operate hydro plants at high capacity during the maintenance period to offset the thermal generation shortfall in Tema.

Akosombo GS is expected to run all six units continuously, while Bui GS will operate its units in staggered shifts to maximize output.

However, the report acknowledged that a deficit in generation capacity is still expected, underscoring the urgent need to purchase liquid fuel to sustain thermal plants in Tema.

An estimated $89.9 million is required to acquire the necessary liquid fuel to meet demand during this period.

SSD/MA

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