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NIGERIA - Europe-Bound & Regional Export Pipelines.

Abuja and Algiers are negotiating a long-dormant project to have a $7 bn gas pipeline to Europe running from Ajaokuta in central Nigeria to pass through Abuja and Kano in the north. It would then cross Niger to southern Algeria and link up with Algeria's line to Europe through Spain.

After more than a decade of talks, in August 1998 a consortium of Chevron, Shell, NNPC, Ghana National Petroleum Corp. (GNPC), Societe Beninoise de Gaz (SoBeGaz) and Societe Togolaise de Gaz (SoToGaz) signed an agreement for a feasibility study on the West Africa Gas Pipeline (WAGP). Completed in March 1999, this concluded its commercial and technical viability. A JV agreement naming Chevron as the $500m WAGP project manager was signed on Aug. 16, 1999. In February 2003 the four nations signed an agreement on implementation of the WAGP. The treaty, for a 20-year period, provides for a legal, fiscal and regulatory framework, as well as a single authority for implementation of the project. The WAGP partners are ChevronTexaco (36.7%), NNPC (25%), Shell (18%), Ghana's Volta River Authority (16.3%) and SoBeGaz and SoToGaz each with 2%. The WAGP will run 1,033 km onshore and offshore from Nigeria's Niger Delta to its terminus in Ghana.

The first part - the 900 MCF/d Escravos-Lagos line - started up in 1989 supplying gas to the Egbin power plant and other industrial consumers in Lagos and Ogun States. But most of this capacity is not used. A 57-km onshore part of the WAGP will run from Alagbado to Seme beach in Lagos State. It will continue offshore, with proposed landfall spurs at Cotonou (Benin), Lome (Togo), Tema (Ghana), Takoradi (Ghana) and Effasu (Ghana). A capacity of 200 MCF/d will expand to 600 MCF/d as demand grows.

The WAGP will carry 120 MCF/d to Ghana, Benin and Togo from June 2005. Sales will rise to 150 MCF/d in 2007, 210 MCF/d in seven years and reach 400 MCF/d 15 years after construction. About $600m will be spent on development of new and renovated power plants in the four states to utilise the gas. The WAGP could be extended to Cote d'Ivoire and Senegal.
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Publication:APS Review Gas Market Trends
Date:Aug 18, 2003
Words:365
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