Ghana’s energy crisis to deepen as N-Gas shuts down supply over indebtedness

African Gas Pipeline1Ghana is likely to suffer a setback in its energy supply following the decision of N-Gas to shut down gas supply to the Volta River Authority (VRA), reported The Finder, a private daily, here Tuesday.

The VRA is said to be indebted to N-Gas, its main supplier of gas through the West African Gas Pipeline (WAGP) to the tune of over 166.3 million U.S. dollars.

The supply was disconnected since Friday, according to a letter sent to VRA to inform them of the action, the daily reported, adding this explained the intensified power cuts since Friday as the 200 MW Sunon Asogli Power Plant, which uses only gas, had been shut down.

“Documents sighted by The Finder indicate that outstanding N-Gas invoices for gas supplied from August 2014 to March 30, 2016, amount to 166.3 million dollars,” the report stated.

N-Gas, jointly owned by Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company (SPDC) and Chevron Nigeria Limited, is demanding full payment before supply to the VRA will be restored

African Gas PipelineThe company buys gas from oil companies in Nigeria and transports it to its customers in Benin, Togo and Ghana, through the 1 billion dollar WAGP, which is operated by the West African Gas Pipeline Company (WAPCo).

Following the shutdown by N-Gas, Ghana’s off-peak schedule capacity as of Monday was 1,473 megawatts while demand was 1,687 megawatts, a situation that compelled her to import 150 megawatts of power from Cote d’Ivoire.

Despite the import, off-peak load shedding of 180 megawatts was carried out but that did not affect industries.

Estimates indicate that more than 1.18 billion U.S. dollar is needed this year to buy fuel required to fire thermal power plants in order for the country to meet its electricity demands.

Out of this amount, 494 million dollars will be required to procure natural gas for the various thermal plants. Enditem

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