VRA debt owed Ghana Gas hits $735 million

Management of the Ghana Gas Company has revealed that the Volta River Authority (VRA) owes the company 735 million dollars.The debt was incurred as a result of VRA’s inability to pay for gas supplied to power its thermal plants.

The development according to Ghana Gas is affecting its financial status.

He argued that taking such a step may plunge the country into a power crisis, causing a serious challenge to homes and industry.

“We don’t think we will cut supply to VRA,” he said adding that government has shown commitment in reducing the debt from over 900 million dollars to 735 million dollars.

Mr. Essel explained that the VRA was required to make a monthly payment of over 3 million dollars but it ceased in October 2018.

He stated that the development has affected the cash flow of Ghana Gas since VRA was unable to meet its obligations.

Ghana Gas

Ghana Gas is a mid-stream gas business company which was formed in July 2011 with the responsibility to build, own and operate infrastructure required for the gathering, processing, transporting and marketing of natural gas resources in the country.
The company is expected to accelerate the nation’s effort of rapid industrialization by providing cost competitive natural gas and gas based products for domestic markets including the development of petrochemical industries, fertilizer and power generation, as well as export markets.

The company’s core mandate is to process, transport, market and sell natural gas and Natural Gas Liquids (NGLs) produced in Ghana.

The company is expected to operate on a business model which will primarily obtain revenue through processing, transportation, the sale of Natural Gas and NGLs. But debt owed it is creating serious challenges for its smooth operation.

 

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