Gasol to expand operations to West Africa

© Christian Duschinger – 123RF.com

A principal in the West African gas to power (WAGP) story, Gasol is already working with national companies in the region to develop gas infrastructure by pursuing several projects along the West African Gas Pipeline.

Nigeria has the ninth largest gas reserves in the world, estimated at 182 trillion cubic feet, which represents the significant majority of natural gas in the region. However, approximately one third of Nigeria's gas production was flared in 2010, according to the Nigerian National Petroleum Corporation.

As a consequence, Gasol is moving to commercialise stranded gas in Nigerian and other countries along the Gulf of Guinea and supply the gas to power plants and industrial users in the West Africa region that currently operate on liquid based fuels.

Low volumes

According to Francis Ugboma, the company's head of LNG & Business Development, the WAGP currently operates at much lower volumes than its designed capacity. "Even if it operated at full capacity, the receiving countries would struggle to utilise the gas because they lack modern, efficient distribution networks," Ugboma told the Oil & Gas Council.

"The aim of our work is to make gas more widely available to industrial and other business consumers and, eventually, for domestic consumption as well. Gasol also intends to acquire strategic equity interests in power projects as the final link in its gas to power value chain."

Ugboma said the company was particularly excited about its project to import LNG into Benin through the Port of Cotonou. The project aims at supplying Benin, Togo and Ghana with regasified LNG through the WAGP.

Reliable supply

"This project will establish the first adequate and reliable supply of natural gas for Benin and Togo and will provide Ghana with a significant increase in the supply of gas available for its consumption. The gas will displace the use of liquid fuels (diesel, HFO and light crude oil) in power generation and industrial applications in these counties substantially reducing generating costs."

Gasol has negotiated two off-take agreements with Benin through the Benin Electricity Community (CEB) and Ghana through the Volta River Authority (VRA). It also obtained a concession in the Port of Cotonou from the Benin government and has been granted Shipper's status under the WAGP.

"Africa has one of the most dynamic, but underfunded power sectors in the world. In many African countries, less than 25% of the population has access to electricity. African governments have committed themselves to increasing the levels of access to electricity to over 50% by 2030. This increase will require a substantial increase in Africa's installed generating capacity," Ugboma said.