N-Gas Limited has officially informed the Volta River Authority (VRA) of its decision to suspend gas supply to Ghana due to outstanding arrears.
In a letter addressed to the Managing Director of VRA on Tuesday, February 18, 2025, the company announced that it would halt further gas deliveries beginning March 6, 2025. The decision is in line with Clause 13.6(a) of the Takoradi Gas Sales Agreement, which allows for the suspension of supply if the buyer fails to meet its payment obligations.
The letter also emphasized N-Gas’s commitment to maintaining the integrity of contracts throughout the value chain. As part of this commitment, the company stated it may require one month’s pre-payment from the VRA to continue supplying gas.
“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 stated, highlighting the company’s firm position on financial commitments.
This decision raises significant concerns about Ghana’s energy security, as the suspension of gas supply could disrupt power generation. The VRA, which depends on gas from N-Gas to fuel its thermal power plants, may now need to seek alternative sources to ensure a stable electricity supply.
