Ghana National Gas Company (GNGC) did not make any payment for natural gas it received from Ghana National Petroleum Corporation (GNPC) in 2020 thereby piling up an incredible debt of $500 million at the end of the year.
Going by figures released by PIAC the debt could reach $564 million as the two state-owned institutions are yet to fully reconcile their accounts.
“As at 31st December, 2020, GNGC’s cumulative indebtedness to GNPC amounted to US$503,802,464.58 as compared to US$334,636,806.27 during the same period in 2019, according to a report by upstream petroleum watchdog PIAC.
“The debt continues to increase due to Volta River Authority (VRA)’s inability to meet its debt service obligations.”
The total volume of raw gas supplied to GNGC by GNPC in 2020 was 20,624, 915.02 MMBtu compared to 31,333,844.730 MMBtu for the period, representing an increase of 51.92 percent.
“The total indebtedness of GNPC stood at $171,959,526.21, compared to $149,833,437.99 for the same period in 2019.”
Analysts point to a mounting payment crisis if the current trend continues. A National Gas Clearing House was proposed as a means of ensuring that gas sector entities are paid in full.
However, revenues collected in the electricity sector did not meet the associated cost of gas supply.
According to PIAC, GNGC is being owed US$843, 276,652.53. GNGC supplies gas to VRA and other commercial institutions for power generation and industrial us