03.04.2006 Business & Finance

Completion of offshore gas pipeline set for May

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Accra, April 3, GNA - The West African Gas Pipeline Project (WAGP) is set to be completed in May 2006, offici als of the Project told the Ghana News Agency on Sunday.

Briefing the Ghana News Agency in Accra during a workshop to explain the potential of the utilisation of natural gas, Mr Dan Hammer, Project Director of the WAGPCo, said 530 kilometres of pipeline had been laid.

He said 85.4 per cent of offshore construction had been completed. Mr Hammer said the project, which started in September 2005, was to be completed in 24 months with the first flow of natural gas by December 2006.

The Project, which is estimated to cost close to 600 million dollars, is an initiative of the Governments of Nigeria, Benin, Togo and Ghana under the auspices of the Economic Community of West African States (ECOWAS) for clean, abundant, stable and cost-effective natural gas supply from Nigeria for power generation and industrial development in Ghana, Togo and Benin.

Mr Hammer said it was vital to establish a common understanding, scope and potential impact of the utilization of natural gas in the other three states, adding that the legal and commercial frameworks were necessary components of the development of the project.

He said natural gas was a well-established product on the international market with Russia, the United States and the European Union leading the pack in its use.

Mr George Amoako-Adjei, Commercial Director of Chevron, said the Project was expected to accelerate regional economic integration of ECOWAS countries and establish a reliable energy infrastructure to attract further investments into the Sub-Region.

WAPCo is owned by Chevron Texaco West African Gas Pipeline Ltd, 42 per cent; Nigeria National Petroleum Corporation, 25 per cent; Shell Overseas Holdings Limited, 17 per cent and Takoradi Power Company Limited, 16 per cent.

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