(Ecofin Agency) - Ghana National Gas Company (GNGC) has announced that the Volta River Authority’s (VRA) debt for the supply of lean gas for power generation is currently more than $350 million.

According to the Chief Executive Officer of GNGC, George Ajah-Sipa Yankey, as a result of the arrears, the company was unsuccessful in paying back the Chinese Development Bank loan facility it acquired for the construction of the Atuabo Gas Processing Plant.

He added that if VRA pays back its debts, the Gas Company would be able pay the $1 billion loan within five years.

CEO noted that when Tullow Ghana was facing the challenges with the turret bearing on the Floating Production Storage Offloading (FPSO) facility, the company cut down its revenue generation as it could not process condensate and liquefied petroleum gas for sale.

“Now Ghana Gas has resumed the processing of 85 million Standard Cubic Feet (SCF) of gas a day, but it behooves the VRA to take all the processed gas for power generation since production will be sustained,” he told My Joy news.

Anita Fatunji