West African Gas Pipeline
Encyclopedia
The West African Gas Pipeline (WAGP) is a natural gas pipeline to supply gas from Nigeria
's Escravos region of Niger Delta
area to Benin
, Togo
and Ghana
. It is the first regional natural gas transmission system in sub-Saharan Africa.
(ECOWAS) proposed the development of a natural gas pipeline throughout West Africa. In 1991, a feasibility report conducted by the World Bank
on supplying Nigerian gas on West African markets deemed that a project was commercially viable. In September 1995, the governments of four African countries signed a Heads of Agreement. The feasibility study was carried out in 1999. On 11 August 1999, a Memorandum of Understanding was signed by participating countries in Cotonou
. In February 2000, an Inter-Governmental Agreement was signed. The WAGP implementation agreement was signed in 2003. Groundbreaking ceremonies for the project were held at Sekondi-Takoradi
, Ghana, on 3 December 2004. The construction started in 2005. The offshore pipeline was completed in December 2006. It was scheduled to start operating on 23 December 2007 but was delayed after leaks were detected in supply pipelines in Nigeria. The second delivery deadline was scheduled on 13 February 2008, but regular deliveries were delayed again, when one of the contractors of Willbros was shot and killed in Nigeria by armed robbers. The pipeline was commissioned on 13 May 2008. The gas deliveries were expected again by the end of 2009 after commissioning of the Takoradi and Tema regulating and metering stations in Ghana, compressor station at Lagos Beach in Nigeria, and regulating and metering stations in Cotonou in Benin and Lome in Togo; however, deliveries were postponed again. According to the company, the reason was a high content of moisture found in the gas pipeline laid onshore.
and in longer term even to Senegal
.
provided a guarantee of $50 million for Ghana, while the Multilateral Investment Guarantee Agency
provided a $75 million political risk guarantee for WAGPo as a whole.
(36.7%), Nigerian National Petroleum Corporation
(25%), Royal Dutch Shell
(18%), Volta River Authority
of Ghana (16.3%), Société Togolaise de Gaz
(SoToGaz - 2%) and Société Beninoise de Gaz
S.A. (SoBeGaz - 2%). The managing director of the company is Charles Adeniji. It is operated by Chevron Corporation.
at Aboadze near Takoradi, operated by Volta River Authority
and the Takoradi International Company's (TICO).
has criticized the project, after local communities in Nigeria complained it would damage land, destroy livelihoods and pollute fishing areas.
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
's Escravos region of Niger Delta
Niger Delta
The Niger Delta, the delta of the Niger River in Nigeria, is a densely populated region sometimes called the Oil Rivers because it was once a major producer of palm oil...
area to Benin
Benin
Benin , officially the Republic of Benin, is a country in West Africa. It borders Togo to the west, Nigeria to the east and Burkina Faso and Niger to the north. Its small southern coastline on the Bight of Benin is where a majority of the population is located...
, Togo
Togo
Togo, officially the Togolese Republic , is a country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, on which the capital Lomé is located. Togo covers an area of approximately with a population of approximately...
and Ghana
Ghana
Ghana , officially the Republic of Ghana, is a country located in West Africa. It is bordered by Côte d'Ivoire to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south...
. It is the first regional natural gas transmission system in sub-Saharan Africa.
History
The project history began in 1982, when the Economic Community of West African StatesEconomic Community of West African States
The Economic Community of West African States is a regional group of fifteen West African countries. Founded on 28 May 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region....
(ECOWAS) proposed the development of a natural gas pipeline throughout West Africa. In 1991, a feasibility report conducted by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
on supplying Nigerian gas on West African markets deemed that a project was commercially viable. In September 1995, the governments of four African countries signed a Heads of Agreement. The feasibility study was carried out in 1999. On 11 August 1999, a Memorandum of Understanding was signed by participating countries in Cotonou
Cotonou
-Demographics:*1979: 320,348 *1992: 536,827 *2002: 665,100 *2005: 690,584 The main languages spoken in Cotonou include the Fon language, Aja language, Yoruba language and French.-Transport:...
. In February 2000, an Inter-Governmental Agreement was signed. The WAGP implementation agreement was signed in 2003. Groundbreaking ceremonies for the project were held at Sekondi-Takoradi
Sekondi-Takoradi
Sekondi-Takoradi, population 335,000 , comprising the twin cities of Sekondi and Takoradi, is the capital of the Western Region of Ghana. It is Ghana's fourth largest city and an industrial and commercial center. The chief industries are timber, plywood, shipbuilding and railroad repair and...
, Ghana, on 3 December 2004. The construction started in 2005. The offshore pipeline was completed in December 2006. It was scheduled to start operating on 23 December 2007 but was delayed after leaks were detected in supply pipelines in Nigeria. The second delivery deadline was scheduled on 13 February 2008, but regular deliveries were delayed again, when one of the contractors of Willbros was shot and killed in Nigeria by armed robbers. The pipeline was commissioned on 13 May 2008. The gas deliveries were expected again by the end of 2009 after commissioning of the Takoradi and Tema regulating and metering stations in Ghana, compressor station at Lagos Beach in Nigeria, and regulating and metering stations in Cotonou in Benin and Lome in Togo; however, deliveries were postponed again. According to the company, the reason was a high content of moisture found in the gas pipeline laid onshore.
Route
The pipeline consists three sections with a total length of 678 kilometres (421.3 mi). The 569 kilometres (353.6 mi) long offshore section starts at starts the Itoki terminal in southeastern Nigeria and runs through the waters of Benin, Togo and Ghana parallel to the coastline, approximately 15 kilometres (9.3 mi) to 20 kilometres (12.4 mi) offshore in water depths of between 30 metres (98.4 ft) and 75 metres (246.1 ft). The Nigerian onshore section of the pipeline connects the offshore section compressor station at Lagos Beach with the Chevron-owned Escravos–Lagos pipeline system, operational since 1989. It is possible that later the WAGP will be extended to Côte d'IvoireCôte d'Ivoire
The Republic of Côte d'Ivoire or Ivory Coast is a country in West Africa. It has an area of , and borders the countries Liberia, Guinea, Mali, Burkina Faso and Ghana; its southern boundary is along the Gulf of Guinea. The country's population was 15,366,672 in 1998 and was estimated to be...
and in longer term even to Senegal
Senegal
Senegal , officially the Republic of Senegal , is a country in western Africa. It owes its name to the Sénégal River that borders it to the east and north...
.
Technical description
The diameter of the onshore section is 30 inches (762 mm). The diameter of the offshore pipeline is 20 inches (508 mm) and the capacity is 5 billion cubic meter (bcm) of natural gas per year. The pipeline was constructed by Willbros, with Bredero Shaw Ltd appling a concrete coating to the pipeline at its facility in Tema, Ghana. The pre-commissioning services were provided by BJ Process and Pipeline Services. The total pipeline costs around US$974 million, for which the World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
provided a guarantee of $50 million for Ghana, while the Multilateral Investment Guarantee Agency
Multilateral Investment Guarantee Agency
The Multilateral Investment Guarantee Agency is a member organization of the World Bank Group that offers political risk insurance. It was established to promote foreign direct investment into developing countries. MIGA was founded in 1988 with a capital base of $1 billion and is headquartered in...
provided a $75 million political risk guarantee for WAGPo as a whole.
Project company
The pipeline is owned by West African Gas Pipeline Company Limited (WAGPCo), a consortium of ChevronChevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
(36.7%), Nigerian National Petroleum Corporation
Nigerian National Petroleum Corporation
The Nigerian National Petroleum Corporation is the state oil corporation through which the federal government of Nigeria regulates and participates in the country's petroleum industry.-History:...
(25%), Royal Dutch Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
(18%), Volta River Authority
Volta River Authority
The Volta River Authority is the main generator and supplier of electricity in Ghana.-Establishment:The VRA was established by the Volta River Development Act, Act 46 of the Republic of Ghana on April 26, 1961....
of Ghana (16.3%), Société Togolaise de Gaz
Société Togolaise de Gaz
Société Togolaise de Gaz is a natural gas company of Togo....
(SoToGaz - 2%) and Société Beninoise de Gaz
Société Beninoise de Gaz
Société Beninoise de Gaz is a natural gas company of Benin....
S.A. (SoBeGaz - 2%). The managing director of the company is Charles Adeniji. It is operated by Chevron Corporation.
Consumers
In Ghana, provided gas will be used by the Takoradi Power StationTakoradi Power Station
The Takoradi Power Station is a thermal power station at Aboadze, east of Sekondi-Takoradi, Ghana. It consists of three power plants.The first power plant operated by the Volta River Authority became operational in 1997. Official inauguration was held on 15 October 2000 in participation of...
at Aboadze near Takoradi, operated by Volta River Authority
Volta River Authority
The Volta River Authority is the main generator and supplier of electricity in Ghana.-Establishment:The VRA was established by the Volta River Development Act, Act 46 of the Republic of Ghana on April 26, 1961....
and the Takoradi International Company's (TICO).
Controversy
Environmental group Friends of the EarthFriends of the Earth
Friends of the Earth International is an international network of environmental organizations in 76 countries.FOEI is assisted by a small secretariat which provides support for the network and its agreed major campaigns...
has criticized the project, after local communities in Nigeria complained it would damage land, destroy livelihoods and pollute fishing areas.
External links
- WAGPCo website
- West African Gas Pipeline (WAGP) Project, Energy Information Administration, March 2003