Ghana Gas can’t service CDB loan due to VRA debt – CEO

Sipa Yankey
Sipa Yankey

Dr George Ajah-Sipa Yankey, the Chief Executive Officer (CEO) of the Ghana National Gas Company (GNGC), says the Volta River Authority is indebted to the Gas Company to the tune of over $350 million for the supply of lean gas for power generation.

As a result of VRA’s indebtedness, he said, it had failed to service the Chinese Development Bank loan facility it secured for the construction of the Atuabo Gas Processing Plant.

He, however, expressed optimism that if VRA redeemed its indebtedness, the Gas Company would pay the one billion dollars loan within a period of five years.

Dr. Yankey said this at Esiama in the Ellembelle District of the Western Region, on the sidelines of the Nzema Excellence Awards, held over the weekend.

The event was organised by the DEQ Change Foundation, a Non-Governmental Organisation, to recognise individuals and institutions within the Nzemaland, who had contributed in diverse ways to bring development in the area.

Dr. Yankey urged Ghanaians in all disciplines of national development to work hard to make meaningful impact in the society.

The CEO said when Tullow Ghana had challenges with the turret bearing on the Floating Production Storage Offloading (FPSO) facility, it reduced its revenue generation because it could not process condensate and liquefied petroleum gas for sale.

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

Dr. Yankey was awarded the Nzema Personality of the Year for his immense contribution to the development of Nzemaland, and the country at large.

Some of the personalities and institutions awarded on the night were Mr. Emmanuel Armah-Kofi Buah, the Minister of Energy and Petroleum, Mr. Freddie Blay, the acting National Chairman of the New Patriotic Party.

The rest are Mrs Rebecca Efiba Dadzie, a former Regional Director of Education, DSP Stella Sedame, the Ellembelle District Police Commander, Mr. Jonathan Ofori Kanrah, a broadcast journalist with the Ghana Broadcasting Corporation and the Ghana National Gas Company.

Source: GNA

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