Comprehensive  Ghana Oil and Gas news, information, updates, analysis


Follow the money

VRA debt owed Ghana Gas hits $735 million

  • SOURCE: Citi | Citi FM
  • The debt was incurred as a result of VRA’s inability to pay for gas supplied to power its thermal plants.

    The development according to Ghana Gas is affecting its financial status.

    Speaking at a press conference, the Head of Finance at Ghana Gas, Emmanuel Essel said the company will not halt supply to VRA even though some industry players have suggested so.

    He argued that taking such a step may plunge the country into a power crisis, causing a serious challenge to homes and industry.

    “We don’t think we will cut supply to VRA,” he said adding that government has shown commitment in reducing the debt from over 900 million dollars to 735 million dollars.

    Mr. Essel explained that the VRA was required to make a monthly payment of over 3 million dollars but it ceased in October 2018.

    He stated that the development has affected the cash flow of Ghana Gas since VRA was unable to meet its obligations.

    Ghana Gas

    Ghana Gas is a mid-stream gas business company which was formed in July 2011 with the responsibility to build, own and operate infrastructure required for the gathering, processing, transporting and marketing of natural gas resources in the country.
    The company is expected to accelerate the nation’s effort of rapid industrialization by providing cost competitive natural gas and gas based products for domestic markets including the development of petrochemical industries, fertilizer and power generation, as well as export markets.

    The company’s core mandate is to process, transport, market and sell natural gas and Natural Gas Liquids (NGLs) produced in Ghana.

    The company is expected to operate on a business model which will primarily obtain revenue through processing, transportation, the sale of Natural Gas and NGLs. But debt owed it is creating serious challenges for its smooth operation.

    Profile photo of Citi FM

    Citi FM

    Citi 97.3 FM is an English-speaking radio station that operates from Adabraka in Accra, the capital of Ghana. We can be heard on 97.3 megahertz and on www.citifmonline.com
    Profile photo of Citi FM

    Share this article

    Leave a reply

    Personality of the Month
    Follow Us Online
    About Us
    Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
    Events Calendar
    << Nov 2019 >>
    MTWTFSS
    28 29 30 31 1 2 3
    4 5 6 7 8 9 10
    11 12 13 14 15 16 17
    18 19 20 21 22 23 24
    25 26 27 28 29 30 1
    Twitter Activity Stream
     

    Partners We are proud to be associated with:

    Skip to toolbar