WAGP system to start gas deliveries in November

The $560 million West African Gas Pipeline (WAGP) will start deliveries to Benin, Ghana, and Togo in November after a series of delays, a senior Nigerian government official told OGJ.

Uchenna Izundu
International Editor

LONDON, Apr. 23 -- The $560 million West African Gas Pipeline (WAGP) will start deliveries to Benin, Ghana, and Togo in November after a series of delays, a senior Nigerian government official told OGJ.

The source said the project's partners had found it difficult to break some rocks in Ghana to lay the 470 MMcfd pipeline and that the compressors needed were not available. Another difficulty was that Willbros, which was contracted to lay the pipeline and install other facilities, pulled out of Nigeria late last year, which also delayed meeting the start-up date, the source added.

"The pipeline will be tested next month to see if there are any leaks along the line," the source said. Asked what would happen to the offtake agreements because of the delays to gas supplies, the source said all of the countries—Nigeria, Ghana, Togo, and Benin—were shareholders in the project "so who can be held liable?"

Last December the 678-km WAGP was scheduled to flow gas from the Escravos area in Nigeria's Niger Delta but this was revised to second-quarter 2007 because of attacks by militants on related infrastructure in the Niger Delta (OGJ, Feb. 22, 2007).

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

The West African Gas Pipeline Co. Ltd. is managing the project. It consists of 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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