Ghana Gas on the verge of collapse - PIAC report

The Public Interest Accountability Committee (PIAC), a group mandated with the oversight responsibility of monitoring and evaluating Ghana’s petroleum revenue has warned that the financial sustainability of the Ghana National Gas Company may be seriously compromised if immediate steps are not taken to curb the company’s growing debt.

According to the 2016 PIAC report on the management of petroleum revenues for the year 2016, the Ghana National Gas Company’s (GNGC) outstanding receivable’s at the end of 2016 stood at $456.22million with VRA alone responsible for $434.70 representing 95% of the said amount.

The total outstanding receivable by Ghana Gas in 2016 amounted to $203.40 added to the balance brought forward from 2015 which is 253.42 resulted in cumulative balance of $456.22million.

The report also stated that not only is the failure of VRA to pay for lean gas supplied threatening the failure viability of GNGC, it is also preventing GNGC from paying for the raw gas supplies export by GNPC.