N-Gas Limited has officially notified the Volta River Authority (VRA) of its decision to suspend gas supply to Ghana due to outstanding arrears.
In a letter addressed to the Managing Director of VRA on Tuesday, February 18, 2025 the company stated that, effective March 6, 2025, it would cease further gas deliveries in accordance with Clause 13.6(a) of the Takoradi Gas Sales Agreement.
This clause permits the suspension of supply if the buyer fails to meet its payment obligations.
The letter further indicated that N-Gas is committed to upholding the integrity of contracts across the value chain and, as a result, may require one month’s prepayment from VRA as a condition for continued gas supply.
“To ensure the sanctity of contracts across the value chain, N-Gas may demand one month of prepayment from VRA for continued gas supply,” the letter stated, underscoring the company’s firm stance on financial commitments.
This development raises concerns over Ghana’s energy security, as the potential suspension of gas supply could impact power generation.
The VRA, which relies on N-Gas to fuel its thermal power plants, may be forced to explore alternative arrangements to prevent disruptions to electricity supply.
GA/MA