Nigeria cuts gas supply to Ghana by more than half

Since the beginning of 2018, Nigeria has been sending about 60 million cubic feet of gas daily to Ghana via the West Africa Gas Pipeline Company Limited (WAPCo), ECOFIN AGENCY reports.

This is less than half of the contractual volume agreed upon during the commissioning of this infrastructure in 2011 in Nigeria. The contractual volume was for 123 million cubic feet daily. This was revealed by Kweku Andoh Awotwi, Board Chairman of the Volta River Authority (VRA), the leading electricity producer in Ghana, and the new managing director of Tullow Ghana who took office on March 1st.

According to the official, this cut in the volume supplied is due to the Ghanaian party’s incapacity to pay its debts towards NGas, the Nigerian gas supplier, which is estimated at $40.3 million. He also noted the vandalism of its pipelines on the Niger and the continuous shortage of gas for Nigerian thermal centers.

The official however revealed that the volume supplied are now prepaid by the Volta River Authority. “We are putting in Letters of Credit (LCs) to get the gas,” he explained. The man also expressed his confidence in the future because Ghana’s gas fields could help reduce the country’s dependence on the gas from Nigeria.