Ghana agrees to pay FG N33.8bn gas debt Feb

Daily Trust - - BUSINESS - By Daniel Adugbo

The Fed­eral Gov­ern­ment has reached an agree­ment with Ghana on the modal­i­ties to set­tle the out­stand­ing N33.8bn owed by Ghana’s Volta River Author­ity (VRA) on gas it re­ceived from a Nige­rian com­pany, N-Gaz, for power gen­er­a­tion.

The agree­ment was reached on Mon­day be­tween a team led by the Group Man­ag­ing Di­rec­tor of the Nige­rian Na­tional Petroleum Cor­po­ra­tion (NNPC), Dr. Ibe Kachikwu and the Pres­i­dent of Ghana, John Dra­mani Ma­hama.

The deal stip­u­lates that VRA will pay the bal­ance of Au­gust and Septem­ber in­voices by lat­est Oc­to­ber 31.

It also in­cludes that the to­tal sum of the gas sup­ply debt will be cleared by lat­est Fe­bru­ary 2016.

A state­ment yes­ter­day by the NNPC spokesman, Ohi Alegbe said it was also agreed that all other sup­plies as from Oc­to­ber will be paid for on or be­fore due date, while the back­log of ar­rears from 2012 will be de­frayed by Fe­bru­ary 2016.

Nige­ria had, last week, threat­ened to cut gas sup­ply to Ghana by 70 per cent over a $181 mil­lion debt that had ac­cu­mu­lated over the years.

The Ghana­ian Min­is­ter of Power, Dr. Kwabena Donkor, had led a del­e­ga­tion to Abuja last week to hold talks with the Nige­rian author­i­ties with a view to re­solv­ing the is­sue.

N-Gaz is a joint ven­ture com­pany owned by the NNPC, Shell and Chevron which de­liv­ers gas through the West African Gas Pipe­line Com­pany (WAGPCo) to Ghana.

Nige­rian gas flows to Ghana through the WAGPCo’s pipe that runs via Benin and Togo.

Ghana’s VRA buys the gas to fire power plants mainly in the east of the coun­try.

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