N-Gas to Halt Gas Supply to Ghana Over Unpaid Arrears
N-Gas Limited has formally notified the Volta River Authority (VRA) of its decision to suspend gas supply to Ghana due to outstanding arrears, raising concerns over the country’s energy security.
In a letter addressed to the Managing Director of VRA on Tuesday, February 18, N-Gas stated that effective March 6, 2025, it would cease further gas deliveries in line with Clause 13.6(a) of the Takoradi Gas Sales Agreement. This clause grants the supplier the right to suspend supply if the buyer fails to meet its payment obligations.
“To ensure the sanctity of contracts across the value chain, N-Gas may demand one month of pre-payment from VRA for continued gas supply,” the letter emphasized, highlighting the company’s firm stance on financial commitments.
The potential suspension of gas supply could significantly impact power generation in Ghana, as the VRA relies on gas from N-Gas to fuel its thermal power plants. The development may force the VRA to explore alternative arrangements to avert disruptions in electricity supply.
It remains unclear how the government intends to address the situation, but the move by N-Gas underscores the financial challenges facing Ghana’s energy sector.
