Gaz du Cameroun SA terminates gas supply contract with Eneo over CFAF9.3 bln debt and threatens to pursue legal actions

Business in Cameroon | In a note published on July 3, Victoria Oil & Gas Plc (VOG), owner of Gaz du Cameroun SA (GDC), announced the termination of its gas supply contract with the electricity company Eneo and threatened to take legal actions.

Indeed, according to VOG, GDC has been supplying natural gas (30 MW) to Eneo via its Logbaba power plant since 2015. However, at end-June 2020, Eneo still owes GDC $16 million, about CFAF9.30 billion. Despite GDC’s reminders, there have been no noticeable changes. Because of this situation, GDC served a default notice on Eneo following the binding terms signed on June 2, 2020, which included a 30-day repair period.

“As we have reached the expiry of this remedy period, GDC has no alternative but to terminate the gas supply agreement with immediate effect,” VOG informs. “The Company will now vigorously pursue this unpaid debt via the legal channels available to it, including a penalty payment of three months’ fees as a result of termination as per the signed term sheet [on June 2, 2020],” the company adds.

The Logbaba power plant was commissioned in April 2015. The supply was interrupted in January 2018 because Eneo, a subsidiary of the UK investment fund Actis, had to face its cash and accounts receivable problems. But it was restored in December 2018 after a deal, which unfortunately just shattered.

Despite solicitations, the electricity concessionaire provided no comments about the news.

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3 comments

  1. Two British Companies fighting over their spoils in Cameroon. When there is no leadership in a country everyone acts like a beast in the Jungle. Strategic sectors of the economy like Energy supply and Power Generation should be under strict regulations by the government . Except in Cameroon, where everything is free for all . Any jack and Thomas is welcomed without scrutiny. Now the general population will be the ones suffering from power outages and spoiled goods in their freezers. Cry my beloved fatherland, Cameroon.

  2. Deux entreprises britanniques se disputent leurs dépouilles au Cameroun. Lorsqu’il n’y a pas de leadership dans un pays, tout le monde agit comme une bête dans la jungle. Les secteurs stratégiques de l’économie comme l’approvisionnement en énergie et la production d’électricité devraient être soumis à des réglementations strictes du gouvernement. Sauf au Cameroun, où tout est gratuit pour tous. Tout jack et Thomas sont les bienvenus sans examen. Désormais, la population générale sera celle qui souffrira de pannes de courant et de produits gâtés dans ses congélateurs. Pleure ma patrie bien-aimée, le Cameroun.

  3. When debt beat lrc does not pay her bills, there is a cascading effect on all facets of life and business! Government officials fly for free on Camair, take planes to Europe for shopping; 6 aircraft not working because of no money for repairs, roads not completed, no money, government non payment of electric bill creates cut off of supply chain. Every penny goes to keep the “king” comfortable and pay salaries. lrc importing palm oil from Gabon, import sugar, import fish etc. No vision, no planning, no economic development!

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