N-Gas Limited has officially notified the Volta River Authority (VRA) of its decision to halt gas supply to Ghana due to outstanding arrears.

In a letter addressed to the Managing Director of VRA on Tuesday, February 18th, 2025, sighted by myjoyonline.com, the company stated that effective March 6th, 2025, it would cease further gas deliveries in accordance with Clause 13.6(a) of the Takoradi Gas Sales Agreement.

This clause permits the suspension of supply if the buyer fails to fulfil its payment obligations.

The letter further indicated that N-Gas is committed to upholding the sanctity of contracts across the value chain and, as a result, may demand one month’s pre-payment from VRA as a condition for continued gas supply.

"To ensure the sanctity of contracts across the value chain, N-Gas may demand one month of pre-payment from VRA for continued gas supply," the letter stated, underscoring the company’s firm stance on financial commitments.

This development raises concerns over Ghana’s energy security, as the potential suspension of gas supply could impact power generation.

The VRA, which relies on gas from N-Gas to fuel thermal power plants, may be forced to explore alternative arrangements to prevent disruptions to electricity supply.