Extending gas advantage through sustained investment in WAGP

West Africa region no doubt boost of huge natural gas resources potential with countries like Nigeria and Ghana leading the chase.

With this huge resource, expectations are more often than not high as it would translate to better gas advantage for businesses and population across the region.

An investment case point is the West Africa Gas Project (WAGP) which is a 678 kilometer pipeline that connects the existing Escravos-Lagos Pipeline System (ELPS) from Itoki, Nigeria and extends along the West African coast, terminating in Takoradi, Ghana. The pipeline has gas delivery laterals from the main line extending into Benin, Togo, and Ghana.

To further strengthen the investment pursuit of the project, Axxela Limited, a fast-growing gas and power portfolio company, have set it sight to expand its gas supply footprint across the West African region following its recent qualification as a Shipper on the West African Gas Pipeline (WAGP).

With its newly acquired shipper status, Axxela will extend its gas advantage to identified customers in the neighboring West African countries with a target to deliver over 100 million standard cubic feet per day (“mmscf/d”) via the pipeline to fuel power plants, commercial entities and residential homes.

Bolaji Osunsanya, Chief executive officer of the company opines that this is a significant achievement in the vista of their operations and speaks to the company’s position as pioneers in the industry.

It is expected that as WAGP shippers, the company will monetize gas resources in the West African region, increase the throughput on the WAGP, and thereby reduce the applicable unit transportation tariff.

Ghana, Nigeria’s West Africa neighbour, is putting finishing touches to the West African Gas Pipeline Reverse Gas Flow Project which is expected to be ready by second quarter of next 2018.

Boakye Agyarko, Energy Minister, said the project is progressing steadily and is on course to be completed before the first gas from the Sankofa-Gye Nyame field come on-stream by the end of second quarter (Q2) of 2018.

Agyarko explained that all parties involved namely: the West African Pipeline Company (WAPCo), Ghana National Gas Company (GNGC), Ghana National Petroleum Commission (GNPC), and Eni Ghana, with the support of the World Bank, have shown maximum cooperation and commitment towards the execution of the project.

The regulator for the pipeline, West African Gas Pipeline Authority (WAGPA), has also indicated its support for the project. Some of the major project updates include: the conclusion and signing off of the Gas Transportation Agreement (GTA) between the GNPC and WAPCo.

He also added that the Ministry has tasked the parties to conduct a detailed hydraulic flow modelling study in order to fully ascertain the operational need for the 2nd lateral line at Tema.

The completion of the project will ensure that first gas from the Sankofa Fields, which is expected to be shipped ashore by the middle of 2018, can now be safely delivered to the thermal units in Tema as well.

Ghana will reportedly receive gas from the OCTP field for about US$7.5 per million British thermal unit (MMBTU).

The volume to be produced by the Sankofa Gas Project is estimated at between 171 and 210 mscf/day of non-associated gas.

KELECHI EWUZIE