Ghana owes a total of $160m for gas supplied to its largest power producer, Volta River Authority (VRA), from Nigeria through the West Africa Gas Pipeline, The Punch reports.

N-Gas Limited, a company owned by the Nigerian National Petroleum Corporation, Chevron and Shell, buys gas from oil companies in Nigeria and transports it to Ghana through the $1bn WAGP. The pipeline, which is operated by the West Africa Gas Pipeline Company Limited, was built to supply natural gas from Nigeria to customers in Benin, Togo and Ghana. N-Gas has an off-take agreement with Ghana to supply 120 million standard cubic feet of gas per day to the VRA.

But supply to the country had fallen short of the contractual volume in recent years for several reasons relating to debt and also militancy. The General Manager, Corporate Affairs, WAGPC, Harriet Wereko-Brobby said the off-taker (VRA) had however established a payment security arrangement for gas consumed to halt “debt accumulation going forward.” She noted that there is still an outstanding debt of around $160m to be paid to the supplier, N-Gas but it is expected that about $30m will be paid shortly.

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