N-Gas Limited has formally notified Ghana’s Volta River Authority (VRA) of its intention to suspend gas deliveries from March 6, 2025, due to outstanding arrears, raising concerns over the country’s energy security.
In a letter dated February 18, 2025, and addressed to the VRA’s Managing Director, the Nigerian gas supplier cited Clause 13.6(a) of the Takoradi Gas Sales Agreement, which allows for the suspension of supply if payment obligations are not met.
“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 company stated, reinforcing its position on financial commitments.
The move could have significant implications for Ghana’s power generation, as the VRA depends on N-Gas supplies to fuel its thermal power plants.
The potential disruption may force the authority to seek alternative arrangements to prevent electricity shortages.