N-Gas to cut gas supply to Ghana over unpaid arrears

Ghana’s energy sector faces a potential setback as N-Gas Limited has formally notified the Volta River Authority (VRA) of its decision to suspend gas supply due to outstanding debts.

In a letter addressed to VRA’s Managing Director on Tuesday, February 18, 2025, and sighted by MyJoyOnline, N-Gas stated that effective March 6, 2025, it would halt deliveries in line with Clause 13.6(a) of the Takoradi Gas Sales Agreement. The clause grants N-Gas the right to suspend supply if the buyer fails to meet its financial obligations.

To avert the suspension, the company has indicated it may require VRA to make a one-month pre-payment as a condition for continued supply.

“To ensure the sanctity of contracts across the value chain, N-Gas may demand one month of pre-payment from VRA for continued gas supply,” the letter emphasized.

This development raises concerns over Ghana’s energy security, as VRA heavily depends on N-Gas to fuel its thermal power plants. A disruption in supply could lead to power generation challenges, forcing authorities to explore alternative arrangements to prevent potential electricity shortages.