Tuesday, 14 December 2010

Oil production in Ghana will not compromise the WAGP project

Managing Director of the Nigerian Gas Company (NGC) Saidu Mohammed has said that the commencement of oil production in Ghana will not compromise the West Africa Gas Pipeline Project (WAGP).

The WAGP project was set up by Chevron, the Nigerian National Petroleum Corporation (NNPC) and other investors to pipe Nigerian gas from Niger Delta to Ghana through Benin and Togo.

The $600 million deal was initiated before Ghana's oil reserves were discovered. Speaking to the media in Warri, Mohammed told journalists that Ghana's impending oil production would not constitute a threat to the WAGP project.

“Yes, gas may come in from Ghana, but it wouldn't be a threat to the WAGP project. Indeed, I believe it will open another window of opportunities for Nigerians. I think Nigerians will even be involved in the oil and gas business in Ghana,” he said.

Mohammed also said that the debt to NGC by the Power Holding Company of Nigeria (PHCN), has been “substantially offset.” NGC is a subsidiary of the NNPC, responsible for the supply and distribution of gas in Nigeria. PHCN's gas purchase accounts for around 70 per cent.

Speaking about the ongoing divestment by the Shell Petroleum Development Company (SPDC) Mohammed said, “NNPC is deliberately making sure the divestment does not impact the gas system in the country”, adding that the gas project in places like Sapele was conceived in this respect.

He added that the local gas pipeline system would be extended to the northern part of the country under the WAGP agreement.

“The Nigerian gas master plan will ensure the extension of gas pipeline beyond Ajaokuta (in Kwara State ) while on the other hand, Ajaokuta could link the eastern parts as far as Akwa Ibom State. The pipelines are not being viewed as Ajaokuta-Kaduana-Kano lines; but rather as backbone of the (proposed) trans-Saharan gas pipeline project,” he said.

Source: World Stage

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