Ghana owes a total of $160m for gas supplied to its largest power producer, Volta River Authority, from Nigeria through the West Africa Gas Pipeline, according to a report by Punchng. N-Gas Limited, a company owned by the NNPC, Chevron and Shell, buys gas from oil companies in Nigeria and transport it to Ghana through the $1bn WAGP.
The pipeline, which is operated by the West Africa Pipeline Company Limited, was built to supply natural gas from Nigeria to customers in Benin, Togo and Ghana. N-Gas has an off-take agreement with Ghana to supply 120 million standard cubic feet of gas per day to the VRA. But supply to the country had fallen short of the contractual volume in recent years.
“There is a current arrangement between the gas suppliers and the off-taker that the volume will be 60mmBtu,” the General Manager, Corporate Affairs, West Africa Gas Pipeline Company Limited, Harriet Wereko-Brobby, told our correspondent in response to questions sent via a text message. She said the off-taker (VRA) had established a payment security arrangement for gas consumed to halt “debt accumulation going forward.”