Gas Pipeline Enters 2nd Phase of Development

THE West African Gas Pipeline Company Limited (WAPCO) has announced the completion of eight development stages in the regional gas distribution project.

A statement from the West African Gas Pipeline (WAGP) in Lagos has it that eight preliminary stages in the project have been completed while construction of physical structures would soon kick off earlier than estimated.

According to the statement, the preliminary commercial structure that will guarantee market for the pipeline product, including agreements with major regional industrial consumers, have been concluded.

Also completed, according to the statement, are the Environmental Impact Assessment (EIA), route surveys, first stakeholders consultation and signing of treaty among Nigeria, Togo, Benin and Ghana which are the major stakeholders in the gas project.

The submittal of the preliminary Draft EIA Study Report, it was stated, has, also, been made to the states with copies to communities, local authorities, institutional stakeholders and selected nongovernmental organisations for study and feedback.

The preliminary stages completed in 2003 also include evaluation of offshore and onshore engineering survey data and the submittal of the conceptual design package to the states.

The statement explained that the conceptual design package is the first deliverable in the Pipeline Development Plan approval process. The offshore and onshore engineering, procurement and construction tender packages have also been said to have been issued to requalified bidders.

Also completed, it was stated, are the formation of WAPCO, the company to build, own and operate WAGP while the International Project Arrangement (IPA) have been finalised with the four project states and joint venture partners.

The first season onshore and offshore Environmental Baseline Study Reports on Benin, Togo, Ghana and Nigeria have been presented to a regional forum of environmental protection agencies for approval while stakeholders consultations around WAGP preliminary EIA report have also held.

This paved way for subsequent completion of the second season EIS onshore and offshore field work.

The statement listed some stages of the project currently in progress to include the comprehensive EIA in the four project states; Front End Engineering Design (FEED); Pipeline Development Plan; Definitive Agreements for Gas Purchase, Transport and Sale; credit Enhancement Arrangements with the World Bank and its affiliates; and Evaluation of Tender Proposals for Engineering, Procurement and Construction Contracts.

Other ongoing project are given as estate survey studies in Benin, Ghana, Togo and Nigeria to identify land owners and determine basis for compensation of lands to be acquired.

The regional gas pipeline project is one of the many expected to facilitate the flare out of associated upstream gas in Nigeria by gathering and marketing of the hitherto flared gas to generate value.

Under the project objective, major joint venture partners in the Nigerian upstream oil and gas sector will channel natural gas through the pipeline for industrial utility in Ghana, Togo and benin.

The WAGP is expected to be completed and brought on stream in 2005.