 of its decision to suspend gas supply to Ghana starting March 6, 2025, due to outstanding payment arrears. The notification, contained in a letter addressed to the Managing Director of VRA on February 18, 2025, references Clause 13.6(a) of the Takoradi Gas Sales Agreement, which allows for suspension of supply if the buyer fails to meet its payment obligations.){kind=link}
N-Gas Limited has officially notified the Volta River Authority (VRA) of its decision to suspend gas supply to Ghana starting March 6, 2025, due to outstanding payment arrears. The notification, contained in a letter addressed to the Managing Director of VRA on February 18, 2025, references Clause 13.6(a) of the Takoradi Gas Sales Agreement, which allows for suspension of supply if the buyer fails to meet its payment obligations.
The letter, sighted by MyJoyOnline.com, highlights N-Gas’s commitment to maintaining contractual obligations across the gas supply chain. To that end, the company stated that it might require VRA to provide one month’s pre-payment as a condition for continued gas deliveries.
“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.
Energy Security Concerns
The suspension of gas supply poses significant risks to Ghana’s energy sector, particularly for power generation. VRA, a key player in Ghana’s energy production, relies on gas from N-Gas to power critical thermal plants. Any disruption in supply could lead to reduced electricity generation, exacerbating challenges in the country’s energy sector.
This development has sparked concerns among industry stakeholders and the public, with fears of potential power outages if the situation is not resolved promptly.
The financial challenges facing VRA have been a longstanding issue, with arrears to gas suppliers frequently cited as a point of contention. Industry observers have called for immediate steps to address the payment backlog to avoid further disruptions.
Analysts warn that the demand for pre-payment from N-Gas signals a stricter stance by the supplier, which could complicate future negotiations if VRA fails to meet its obligations.