Business News of 2014-04-12

Nigeria compensates Ghana for shortfall in gas supply

Ghana has received a compensation of $10 million from Nigeria over the failure of the latter to meet supply of gas agreement between the two countries.

The agreement required Nigeria to supply Ghana with 123 Million Metric British Thermal Units (MMBtu) per day.

However, Nigeria has failed to meet that target, supplying 30 MMBtu/d and less sometimes. The Director of Planning and Business Development of the Volta River Authority (VRA), Kofi Ellis, told TV3’s Sandra Amarquaye on Friday, April 11 that Ghana has been paid some damages by Nigeria over the shortfall as stipulated in the contract.

“The contract already stipulates some liquidated damages for reduction in supply,” Mr. Ellis told our reporter.

“I know that already we have been paid some damages for the reduction in supply.”

A recent visit of the Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, to Nigeria culminated in West Africa’s biggest gas-supply nation promising to supply a constant 50 MMBtu/d.

Mr. Ellis commended that intervention by government, admitting that inasmuch as Nigeria would want to help Ghana, they are also facing challenges.

“I guess the Nigerians also share in our problems. They understand. The unfortunate thing is that this is a commodity that both countries need for themselves. So it is a matter of trying to see how best you can help your neighbor.”

He said the contract signed “many years ago” will not be abrogated though one party is facing challenges in meeting the terms.

The recent below-expectation supply of gas from Nigeria has been cited as one of the causes of challenges in the energy sector.

Source: tv3network.com
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