Ghana 
Ghana closer to Nigerian gas imports

afrol News, 3 June - The Ghanaian government has signed a letter of intent with Nigerian oil and gas companies to go forward with the construction of the West Africa Gas Pipeline Project (WAGP). The pipeline will provide Ghana - constantly short in energy supply - with a cheaper and more reliable energy source. 

The Ghanaian Minister of Energy, Albert Kan-Dapaah and the Chief Executive of Ghana's main energy supplier, Volta River Authority (VRA), Charles Wereko-Brobby, signed on behalf of Ghana. The Nigerian part was composed of the Chairman of N-Gas, Joe Anyigbo. N-Gas is a newly formed Nigerian gas marketing co-operative outfit involving the Nigerian National Petroleum Corporation (NNPC), ChevronTexaco Nigeria and Shell Nigeria.

Minister Kan-Dapaah today told the daily 'Accra Mail' the gas pipeline deal would imply lower energy costs for Ghana, which today relies on rainfed hydro-power and imported petroleum. The gas is to substitute the crude oil that currently is being used at the Takoradi Thermal Plant, corresponding to a fuel bill "reduced by between 20-25% per annum," according to Kan-Dapaah.

The four-nation West African Gas Pipeline Project (WAGP) is one of Nigeria's major gas export projects. The pipeline will run 617 kilometres along the West African coast from Lagos, passing through Benin and Togo, to Takoradi in Ghana. It is scheduled to carry 350 cubic feet of gas to the three countries, although mainly reaching Ghanaian consumers. The Société Beninoise de Gaz and Société Togolaise de Gaz are also involved in the deal.

The letter of intent signed in Accra yesterday is designed to speed up the pipeline project, which has been delayed at various stages. The project was originally initiated in 1995 and was supposed to have been completed by now. Repeated disagreements between the Nigerian project owners and the four countries have contributed to the delay. 

Meanwhile, however, the long awaited energy crisis in Ghana has started to materialise, and Ghanaians are eager to see the pipeline completed as soon as possible. Authorities even might "have to resort to power rationing," Minister Kan-Dapaah warned one month ago.

An energy price hike of up to 150 percent is expected as consumption is far outnumbering production. The actual crisis has been provoked by low precipitation, not filling water reservoirs enough to secure an all-year hydro-power production. Due to low electricity prices, imports from neighbouring countries have also been barred. 

The pipeline will however not solve the ongoing crisis as it will not be completed before 2005/06. Also Togo and Benin are suffering of rising fuel prices and a drop in energy generation. 

Sources: Based on Ghanaian govt, press reports and afrol archives

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