Ghana is on the brink of a power crisis as N-Gas Limited, a key supplier of natural gas, has announced its decision to suspend gas supply to the Volta River Authority (VRA) due to unpaid debts. The suspension, effective March 6, 2025, could significantly impact power generation and energy security in the country.

In a letter to the VRA, N-Gas cited Clause 13.6(a) of the Takoradi Gas Sales Agreement, which permits the suspension of supply if the buyer fails to meet its payment obligations. The company has emphasized its commitment to upholding the integrity of contracts across the value chain and may require the VRA to make a one-month prepayment as a condition for continued gas supply.

The VRA, which heavily relies on N-Gas to fuel its thermal power plants, will need to explore alternative sources of gas to prevent disruptions in electricity supply. The impending suspension raises concerns over Ghana's energy security, as it could affect industries, businesses, and households nationwide.

The ongoing financial challenges between N-Gas and VRA highlight the broader issue of energy sector funding in Ghana. If left unresolved, this could have far-reaching consequences for both businesses and households, underscoring the urgent need for stakeholders in Ghana's energy sector to act swiftly to address the arrears and ensure continued gas supply.

N-Gas Limited transports gas to the VRA through the West African Gas Pipeline Company (WAPCo). The company's decision to suspend gas supply is a clear indication of the financial constraints faced by Ghana's energy sector, which could have long-term implications for the country's economic growth and development.

As the suspension deadline approaches, Ghana's energy sector stakeholders must work together to find a solution to the outstanding arrears and prevent power shortages. Failure to do so could lead to widespread disruptions in electricity supply, affecting not only the economy but also the daily lives of citizens.

In the face of this looming energy crisis, Ghana's government and energy sector stakeholders must take immediate action to address the financial challenges and ensure a stable energy supply. The country's energy security and economic growth depend on it.