Exploration & Production

Ghana’s power sector debts raise upstream concerns

Debt concerns at Ghana’s national gas company are feeding through to the country’s upstream sector, discouraging investment Debt concerns at Ghana’s national gas company are feeding through to the country’s upstream sector, discouraging investment.
By Felix Janvrin 20 July 2018 0 31824
A gas project in Ghana. Eni’s Offshore Cape Three Points project in Ghana. (Eni)

The parlous financial state of Ghana National Gas Co. (GNGC) has had a detrimental effect on Ghana’s ability to pay for midstream and upstream projects.

A report released by Ghana’s Public Interest and Accountability Committee (PIAC) has found GNGC “may well have been caught up” in a cycle of indebtedness arising from non-payments by power utilities. It has urged the government to lay out a roadmap explaining how it will clear around $850 million in debt owed by utility the Volta River Authority (VRA) to GNGC...