March 23, 2023

Ghana’s debt forces Nigeria to cut gas supply by 50%

There are indications that Nigeria may have reduced its gas supply to Ghana thermal power production by 50 percent (to about 60 million cubic feet of gas per day), due to its $40.3 million debt.

Report from the country’s agency, Ecofin, stated that Nigeria had since the beginning of the year been sending about 60 million cubic feet of gas per day to Ghana through the West Africa Gas Pipeline Company Limited, WAPCo. This is less than half of the contractual volume agreed upon during the commissioning of this infrastructure in 2011 in Nigeria. Kweku Awotwi, Board Chairman, Volta River Authority, VRA, the leading electricity producer in Ghana, noted that the contractual volume was 123 million cubic feet of gas per day and that it should help generate electricity in Ghanaian thermal power plants. He added that since the day the agreement was signed, Nigeria had never been able to send 100 million cubic feet a day. Meanwhile, Awotwi revealed that the volumes supplied were now prepaid by the Volta River Authority.

Credit to – vanguard Nigeria

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