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Gas Pipeline project to complete in 2010

By Abdul-Gafar on Wednesday, 30th September 2009

Government has vowed to deal ruthlessly with those who deliberately use all sorts of means to sabotage the West African Gas Pipeline Project.

The project, which started in 2005, is aimed at tapping gas resources from Nigeria for power generation in Ghana, Togo and Republic of Benin.

The Deputy Energy Minister, Emmanuel Armah-Kofi Buah, who gave the warning a two-day seminar organized by the West African Gas Pipeline Company (WAPCo) in Accra last week, said the acts of vandalism pose a serious threat to the pipeline which has not yet been gassed up.

Mr. Armah-Kofi Buah assured that the Government and other stakeholders would do everything possible to minimize the incidence of pipeline interference and damage.

“Government is working with the local communities and security agencies to provide adequate protection to the pipelines and other facilities,” the Energy Minister stated.

He urged WAPCo to expedite action on the completion of the West African Gas Pipeline project. The project’s deadline was supposed to be May 2008 but has now been shifted to next year.

Mr Armah-Kofi Buah said after several years of efforts, the project still faced many challenges and had consequently delayed gas delivery to the Volta River Authority (VRA) and other beneficiaries.

He revealed that the continued postponement of the completion date for the project created a situation where the foundation customers, who had taken the risk of guaranteeing the project, would continue to purchase light crude oil from other sources at great cost.

“In simple terms, the expectations of Ghanaians have not been entirely met. The apparent delay in the implementation of this project has resulted in cost increase of nearly 70 percent.

This is not only putting financial burden on the equity holders, but might also increase the tariff to the end users,” Mr. Armah-Kofi-Buah emphasized.

BUSINESS GUIDE learnt the original budget of the West African Gas Pipeline Project has increased from $600 million to $1 billion.

Whilst challenging WAPCo to take steps to improve the management of the project, the Energy Minister also tasked the company to assume its proper role as the technical and economic regulator of the pipeline.

“With WAPCo close to its first gas transport, we are concerned about the realistic emergency plans that have been put in place to deal with gas related incidents.

It is the responsibility of the various agencies in whose jurisdictions the pipeline falls to create awareness of its location,” he added.

The objectives of the two-day seminar, which ends today, are to update delegates on the current status of the offshore damage prevention programme and to review its implementation.

Source: Felix Dela Klutse/Business Guide/Ghana

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