TOR Can't Raise Letters Of Credit

GOVERNMENT IS facilitating joint venture arrangement with PetroSaudi for the PetrolSaudi to fix the operational efficiencies and ensure consistent supply of crude oil at Tema Oil Refinery (TOR), Deputy Minister for Energy and Petroleum, John Jinapor has said. This, Mr. Jinapor said, was as a result of TOR's inability to work at full capacity due to �its operational inefficiencies and the inability to establish letter of credit for purchase of crude oil. The Minister said this on the floor of Parliament yesterday when he appeared before the Legislators to respond to series of questions about the energy sector. Mr. Jinapor could however not provide the current debt of TOR and how much had been paid so far and said the Finance Ministry was the appropriate entity to provide the figures. Responding to questions on what is accounting for the ongoing power cuts in the country, the Minister stated that it was as a result of inadequate generation of power resulting from erratic gas supply from the West African Gas Pipeline, shut down of plants for planned and unplanned maintenance and low water inflow into Bui and Akosombo reservoirs. He however stated that the ministry was working closely with the thermal power generators to ensure that the plants return into service as soon as possible to reduce the deficit in the power generation. �In addition, it is expected that following the completion of the TICO expansion project by end of year and the Kpone thermal power project by first quarter of 2015,� additional 110MW and 220MW, respectively, will be added to reduce the deficit, he said. The minister also explained that procurement and approval processes were ongoing for loan and commercial agreements for an upcoming electrification project in some parts of the country in response to when some communities would be connected to the national grid.