Ghana’s electricity sector is facing major disruptions as Italian energy company ENI has sharply reduced gas supplies to the country, underscoring the deepening financial strain on West Africa’s power sector. Sources within the industry report that ENI has lowered gas flows to 170-180 million standard cubic feet per day (mmscfd), down from the previous 246 mmscfd, due to unpaid debts totaling over $200 million. Despite ongoing commitments from Ghana’s Ministry of Energy and the Ghana National Petroleum Corporation (GNPC), less than 5% of the debt has been settled.
“This is a critical situation threatening Ghana’s industrial output and economic stability,” an energy analyst explained, highlighting the widespread impact on the nation’s power generation and overall economic health.
The crisis is exacerbated by technical challenges at the Atuabo Gas Processing Plant, which has struggled to maintain operations following maintenance in July. Meanwhile, the West African Gas Pipeline Company (WAPCo) faces its own debt of over $20 million, though it has yet to restrict gas supplies.
The shortage has forced Independent Power Producers (IPPs) to reduce services, leaving the state-owned Volta River Authority (VRA) increasingly reliant on standby plants like the Kpone Thermal Power Plant (KTPP). This shift has severely disrupted the essential reverse flow of gas from Takoradi to Tema, key industrial hubs for Ghana’s economy.
The crisis emerges amid Ghana’s broader economic challenges, including complex debt restructuring discussions with international creditors. Energy sector debts continue to pose a significant risk to the country’s financial stability.
Experts caution that without swift intervention and substantial financial commitments, Ghana may face severe power outages, known locally as “dumsor,” which previously hindered the nation’s economic progress.
