Nigeria misses gas supply deadlines to Ghana

Nigeria has delayed supplying gas to Ghana through its $560 million West African Gas Pipeline because of militants' vandalism on related infrastructure in the Niger Delta.

Uchenna Izundu
International Editor

LONDON, Feb. 22 -- Nigeria has delayed supplying gas to Ghana through its $560 million West African Gas Pipeline because of militants' vandalism on related infrastructure in the Niger Delta.

According to local reports, Ghana—one of the customers of the 678-km WAGP system—has constructed its section of the line and other facilities and expected to receive gas in March. Ghana is expected to take 122 MMcfd of gas for industrial use.

Nigeria is evaluating the status of the pipeline with the shareholders in West African Gas Pipeline Co. (WAGPCo), which is managing the project, and hopes to resolve the problem as soon as possible.

A spokesman for Chevron Corp., which is the project leader, said WAGPCo would aim for first gas deliveries in the second quarter.

Nigeria's Energy Minister Edmund Daukoru said the 470 MMcfd pipeline should have been completed in December, 18 months after the final investment decision was taken by the shareholders.

Gas through the WAGP system will be used for electric power generation and industrial development in Ghana, Togo, and Benin.

Shareholders in WAGPCo are ChevronTexaco West African Gas Pipeline Co. Ltd. 38.2%, Nigerian National Petroleum Corp. 26%, Shell Overseas Holdings Ltd. 18.8%, and Takoradi Power Co. Ltd. 17%.

Contact Uchenna Izundu at uchennai@pennwell.com.

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