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West African Gas Pipeline
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By OilGasArticles Editor
Published on 04/8/2006
 
Progress on the WAGP, which will deliver 140 MMcf/d of natural gas to power stations in Ghana, has been moving forward steadily. In November 2004, the World Bank approved a $125 million investment guarantee for construction of the WAGP, and in December 2004, NNPC and its WAGP partners made a FID for implementation of the project.
The pipeline will carry natural gas from Nigeria to Ghana, Togo, and Benin

Progress on the WAGP, which will deliver 140 MMcf/d of natural gas to power stations in Ghana, has been moving forward steadily. In November 2004, the World Bank approved a $125 million investment guarantee for construction of the WAGP, and in December 2004, NNPC and its WAGP partners made a FID for implementation of the project. In May 2005, the first shipload of pipes arrived at Port Tema for the construction of the pipeline. The $590 million, 420-mile pipeline will carry natural gas from Nigeria to Ghana, Togo, and Benin. Operational start-up of the project is expected during 2006, with initial capacity of 200 MMcf/d of natural gas. The pipeline is expected to function at a full capacity of 450 MMcf/d within 15 years. The Multilateral Investment Guarantee Agency (MIGA), and the International Development Association (IDA) are also helping to fund the WAGP by giving $75 million and $50 million, respectively.

In order to help promote domestic consumption of natural gas, two domestic distribution plans are being developed. The proposed $580 million Ajaokuta-Abuja-Kaduna pipeline will supply natural gas to central and northern Nigeria, while the proposed Aba-Enugu-Gboko pipeline will deliver natural gas to portions of eastern Nigeria.

Nigeria and Algeria continue to discuss the possibility of constructing a Trans-Saharan Gas Pipeline (TSGP). The 2,500-mile pipeline would carry natural gas from oil fields in Nigeria's Delta region to Algeria's Beni Saf export terminal on the Mediterranean. It is estimated that construction of the $7 billion project would take six years. The TSGP is currently in the study phase of development.

Source: Energy Information Administration