N-Gas, the main supplier of gas to Ghana’s Volta River Authority (VRA), through the West African Gas Pipeline (WAGP), has shut down supply due to the indebtedness of over $166.3 million.
The Deputy Power Minister, Mr Jinapor, confirmed that the VRA is actually owing over $100 million but refused to confirm the exact amount,GhanaWeb reported.
However, Jinapor, said the threat of the shutdown is not going to worsen the current power rationing going on in the country.
Jinapor further explained to representatives of GhanaStar.com that the debt was caused by the explosion of the pipeline which caused this debt.
He, however, mentioned that plans are underway to get the debt settled adding that the VRA is working with banks to set up an escrow account to start the process of repayment of the debt.
N-Gas is a company jointly owned by Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company (SPDC) and Chevron Nigeria Limited.
The company, which is jointly owned by Shell, Chevron and the NNPC, buys gas from oil companies in Nigeria and transports the gas to its customers in Benin, Togo and Ghana through the $1 billion West African Gas Pipeline (WAGP), which is operated by the West African Gas Pipeline Company (WAPCo).
The International Project Agreement (IPA) – signed in May 2003 by WAPCo and the governments of Benin, Ghana, Nigeria and Togo, with the secretariat of the Economic Community of West African States (ECOWAS) as witness – provides that N-Gas be allocated a space in the pipeline that could transport up to 200 million standard cubic feet of gas per day.
Source : Leadership