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N-Gas, VRA, Power Ministry in talks over debt

  • SOURCE: | Editor
  • NIGERIA GASA high-powered meeting was held Tuesday among the Ministry of Power, the Volta River Authority (VRA) and Nigeria Gas (N-Gas) to discuss how best the debt crisis that has rocked the national power generator could be resolved.

    The meeting was necessitated by the threat by N-Gas to cut gas supply to Ghana between today and tomorrow if the VRA fails to honour its debt obligations.

    According to sources close to N-Gas and the West African Gas Pipeline Company, N-GAS was demanding a strategic payment plan with timelines on how the VRA was going to honour its debt obligation.

    Background

    The VRA is said to owe N-Gas more than $182 million and the Ghana National Gas Company (Ghana Gas) about $150 million, a situation which is said to be crippling operations of the two companies.

    Ghana has an agreement with Nigeria to receive a contractual volume of 120 million standard cubic feet (mmscf) of gas daily, but the government of Ghana had, in the past, held several discussions with Nigeria over the payment of the long-standing debt.

    The threat by N-Gas means that thermal units in the country will have to compete for the 100 mmscf from the Atuabo gas plant.

    The country will also have to start shopping for light crude oil to replace gas if N-Gas goes ahead with its decision.

    Press confab

    The sources said the outcome of yesterday’s meeting would be presented at a press conference in Accra today, during which all the players would state their case and indicate future business plans with the VRA.

    They said the conference would also make known the next line of action, either for N-Gas to cut gas supply to Ghana completely or curtail flow.

    Currently, the non-payment on the part of Ghana, according to the supplier, was stalling many of its operations and making it difficult to meet its overhead expenses.

    Any cessation of Nigerian gas supply to Ghana between today and tomorrow will worsen the current power rationing in the country.

    Source: http://graphic.com.gh/news/general-news/51364-n-gas-vra-power-ministry-in-talks-over-debt.html#sthash.ByViJLtf.dpuf

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