Ghana Receives $10million Compensation from Nigeria

Minister of Energy and PetroleumGhana 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 sometimes less.

The Director of Plan­ning and Business Devel­opment of the Volta River Authority (VRA), Kofi Ellis, said 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”

The Minister of Energy and Petroleum, Emmanuel Armah-Kofi Buah, in his recent visit 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 asNigeria 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: myjoyonline

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