The Nigerian gas company has given Ghana’s Volta River Authority up to the end of February 2016 to clear its outstanding debt of $171.5m (N33.79bn).
N-Gas had recently said it would cut gas supply by 70 per cent to Ghana’s main power generation company by Friday, October 16, 2015 due to unpaid debts of $181m.
It was learnt that the VRA was said to have paid $9.5m last Friday out of the $181m debt for gas supplied from August 2014 to this month.
It is worthy to note that Ghana has a deal with Nigeria to receive a contractual 120 million standard cubic feet of gas daily.
Ghana obtains approximately 25% of its power supply through gas from Nigeria, which is transported through a pipeline via Benin and Togo. Nigeria Gas’ threat of cutting the gas – reducing volumes by 70% – would raise the cost of supply.
Ghana’s problems possibly stem from stress in its budget. To fund payments, Ghana had been borrowing from numerous banks at high interest rates, and it is currently partaking in an International Monetary Fund programme to restore its fiscal balance.
N-Gas is jointly owned by Shell Petroleum Development Company, Chevron Nigeria Limited and the Nigerian National Petroleum Corporation.