The West African Gas Pipeline Company (WAPCO) has suspended the flow of gas from Nigeria to Ghana over unpaid bills by the Ghana government.
According to WAPCO spokeswoman Harriet Wereko-Brobby, power producer Volta River Authority (VRA) owes Nigeria’s N-Gas around $180 million, while N-Gas in turn owes the Pipeline Company $104 million.
She said it was the first time the pipeline, a public-private partnership in which a Chevron subsidiary has a 36.9 percent stake, has been closed over non-payment.
The suspension is likely to exacerbate power supply problems in Ghana given low water levels at the main hydro plants.
This in turn could force the government to rely more heavily on imported gas.
Energy supply is a critical issue for the government in the run-up to what is likely to be a closely contested election in November.
For years regular blackouts have angered voters and this year power price rises have risen steeply.
Source: Starrfmonline
