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Kachikwu calls for sustainability of West African gas pipeline project

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu,
has called for sustainability of the West African Gas Pipeline Project (WAGP)
to increase supply of gas to West African countries and boost power supply.
Kachikwu made the call at the 17th meeting of Committee of Ministers of West
African Gas Pipeline Authority (WAGPA) in Abuja on Tuesday.
The WAGPA is an international institution established by the Treaty on the West
African Gas Pipeline (WAGP) Project.
The project was signed by the Heads of States of the Republic of Benin, Ghana,
Nigeria and Togo.
It consists of 678 km pipeline to transport natural gas from Nigeria to Benin,
Togo and Ghana for power plants and heat-using industries for the generation of
power to electricity consumers in the region.
Kachikwu said the meeting in Nigeria was to consider the feedback on the issues
discussed at the last meeting held in Dec. 2017 in Lome, Togo.
He said the meeting was designed to get feedback on WAGP operational issues,
status of the Western inter-connection, tariff and other regulatory issues.
He said, “We all have nurtured the WAGP project and today’s meeting will
further strengthen our resolve to see that we move forward on pending issues to
achieve the set targets.
“We must continue to build on our achievements and not to relent on our
efforts. I sincerely hope the respective parties were able to make progress on
the issues raised at the last meeting.
“We must endeavor to resolve those issues that will lead to the advancement and
aspiration of our respective countries and region,” he said.
The minister said the project should be sustained with the cooperation from all
parties, as it was being celebrated all over Africa as the flagship project for
the New Partnership for Africa’s Development (NEPAD).
“It is a job that we cannot afford not to deliver but providing power to the
African people, especially the west African people is always the single most
important development item in this sub-continent.
“It is absolute important for us as brother ministers to continue to work very
laboriously to archive this objective,” he said.
He explained that the Federal Government of Nigeria had recorded stability of
gas supply in the Niger-Delta.
“Through the leadership of President Muhammadu Buhari, we have been able to
work with our brothers in Niger-Delta to create a bit more stability in the
operational dynamic of this sector.
“The effect of that is the increased supply to this pipeline, although, not
where you want us to be but certainly, we have substantially increased.
“Nigeria is becoming more assured and also when more gas resources are being
discovered offshore Lagos,” he said.
The Managing Director of West African Gas Pipeline Company (WAGPC), Mr. Walter
Perez, said the actions of member nations was manifesting in a turn-around and
a steady regional economic integration.
He said the situation in WAGPC had improved due to upgrade of the compressor
station in Nigeria.
“As a result of this, we have been able to demonstrate the capability to
transport over 85,000 MMBtu/d.
“In addition, this upgrade has allowed us to be more consistent in delivering
gas to our customers in spite of variations in pressure at Itoki,” he said.
Perez explained that the efforts of Ghana’s Minister of Energy had resulted in
the payment of a material portion of the company`s legacy debt.
The managing director said additional payments were currently being processed,
and that more work was needed to retire the debt.
“We are encouraged by the assurances given by the ministry that the legacy debt
will be fully retired in 2018,” said Perez.
According to him, the western interconnection project would enable gas flow
from western offshore Ghana to the primary load center for power generation at
Tema.
“We have progressed engineering works and related procurement activities. We
have also executed a construction management agreement with Eni.
“We are now eager for the construction to commence at Tema and Takoradi,” he
noted.
Perez hinted that WAGPCO was currently working with WAGPA to redefine the
tariff structure for the WAGP to promote increased utilisation and
diversification of both supply and off-take.
“Doing so will also enable gas from the WAGP to remain the fuel of choice in
the West African sub-region,” he noted.

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