Nigeria Pays Ghana $10m In Default Of Energy Agreement

Nigeria has paid the sum of $10m to Ghana in breach of contract for failing to supply gas as spelt out in the West African Gas Pipeline project agreement.

 


This was disclosed by Ghanaian President John Mahama while visiting Germany. President Mahama said the country’s power plants that rely on gas from the West Africa Gas Pipeline have had to shut down as a result.
Nigeria was expected to supply at least 120 million cubic feet of gas daily to power some of Ghana’s plants but the OPEC giant has consistently failed to come up with its end of the bargain. Ghana is currently undergoing a major energy crisis and Nigeria’s failure to meet its obligations has been attributed to a major part of this.
Officials of the Ghana Grid Company earlier this week indicated that they have had to shed between 400 and 600 megawatts of power due to the inconsistent and reduced supply of power from the local power generators, which mainly get their supply from Nigeria through the West African Gas pipeline agreement.
President John Mahama said the country is looking at developing its own gas reserves.
"Potentially we can get 150 million standard cubic feet from the Jubilee field, we are developing the TEIN field which will come on stream in 2016 and that again can provide us with between 50-80 million standard cubic feet.
"So going forward we are looking at about between 300-350 million standard cubic feet which will be very important in generating power and ensuring energy security for us," he stated.