GHANA GOVERNMENT OWES ENI $1.1bn FOR GAS SUPPLY

The government is projected to generate $1.1 billion in 2025 to clear outstanding payments owed to ENI for gas supply.

Finance Minister, Dr. Cassiel Ato Forson

These obligations cover monthly invoices, replenishments of letters of credit (LC), and overdue arrears.

This financial commitment was disclosed during a high-level discussion involving Finance Minister Dr. Cassiel Ato Forson, Energy Minister John Abdulai Jinapor, and ENI representatives.

Despite mounting financial challenges in the energy sector, the government reiterated its dedication to maintaining a stable gas supply.

Dr. Forson attributed the significant debt burden partly to the previous administration’s failure to fulfill its financial obligations, forcing the current government to settle arrears while managing ongoing payments.

“Our monthly energy costs stand at 2.5 billion cedis, with fuel and power generation alone consuming 1.9 billion cedis. Yet, ECG collects just 1.3 billion cedis, leaving a gaping shortfall of 1.2 billion cedis every month,” he stated.

To tackle the crisis, the Ghana National Petroleum Corporation (GNPC), the Energy Ministry, and the Finance Ministry will undertake a comprehensive review of the energy sector this week. The objective is to evaluate liabilities and develop a sustainable strategy for the future.

Despite his frustration over the inherited debt, Dr. Forson reassured Ghanaians that the government is committed to stabilizing the energy sector, settling arrears, and maintaining a reliable energy supply.

“The burden is heavy, but we will not shy away from our responsibilities. However, Ghanaians must understand that the cost of past missteps is being felt now—we are all paying for them,” he noted.

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Source: citinewsroom.com