Ghana and Nigeria resolve gas debt issue

Ghana and Nigeria resolve gas debt issue

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THE government of Ghana and the owners of N-Gas, including the Nigerian National Petroleum Corporation (NNPC), have resolved the disagreement over the payment of outstanding gas debt owed by the Ghanaian government for gas supply through the West Africa Gas Pipeline.
The two parties agreed that Ghana will pay all of the outstanding $170 million debt before the February 2016 deadline. The debt is expected to be settled in three tranches starting in November. The agreement will also see Ghana’s power generator, the Volta River authority (VRA), pay August and September outstanding payments and continue to make all other payments when due.
The outstanding debt to be settled by February is related to backlog of areas dating back to 2012. Ghana receives about 90mmscfd of gas from N-Gas – about 70 percent of the country’s gas requirement. Gas supply from Nigeria is used to fire around 25 percent of total available capacity in Ghana with 50 percent from hydroelectricity and the remaining 25 percent from local gas supply.

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