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Government has no obligation to supply fuel to Karpower - Energy Minister

General News

The Minister of Energy Boakye Agyarko says government has no obligations under the Power Purchase Agreement to supply and deliver fuel to Karpowership for the operation of 450 MW Powership.

The Minister of Energy Boakye Agyarko says government has no obligations under the Power Purchase Agreement to supply and deliver fuel to Karpowership for the operation of 450 MW Powership.

 

He explained to Parliament yesterday that for supply and delivery of fuel, Karpowership has engaged with the relevant stakeholders.

“To meet their contractual obligation for the supply and delivery, Karpowership has engaged Ghana National Petroleum Company under a Fuel Supply Agreement to supply and deliver heavy fuel oil for the operation of the Powership,” Mr Agyarko said.

The Energy Minister said this yesterday on the floor of Parliament when he responded to a question asked on behalf of Kwabena Donkor on how Ghana’s Heavy Fuel Oil supply obligation under the Karpower Purchase Agreement is met.

It would be recalled that earlier this year, Karpowership and the Electricity Company of Ghana  signed a Power Purchase Agreement for the provision of 450 MW of electric power through the supply of two 225 MW powerships.

In a related issue, Mr Boakye Agyarko told Parliament that the National Petroleum Authority was drafting regulations to cover crude oil, petroleum product supply and quality control that would be enforced when accented into law.

He further indicated, “any petroleum service provider that is non-compliant would upon summary conviction be fined some penalty units (up to 15,000) or imprisoned for up to 5 years or both and the license may also be withdrawn.”

This was in response to measures instituted by his outfit to ensure that laws, regulations and guidelines on specifications for petroleum products are complied with.

Mr Agyarko further mentioned quality checks on imported products and petroleum product marking scheme as measures that would be put in place to ensure that consumers at the pumps are protected from contaminated fuel at the final dispensing outlet.

Some of the measures on quality checks on imported products include “quality certificate from the loading port is checked for compliance with national standards and quality certificate of all production batches are checked for compliance with national standards.”

On the petroleum marking scheme, some measures include the “marking of petroleum products that are loaded at the depots and earmarked for the market and the sanctioning of defaulted OMCs to ensure compliance with the Authority’s marker specification.”