Chevron named project manager for West African Gas Pipeline project
In a joint venture agreement, Chevron has been appointed project manager for one of West Africa's most significant
regional energy projects, the WAGP.
The joint venture agreement establishes a consortium of six energy resource companies to develop the West Africa Gas
Pipeline, outlines the corporate structure of the joint venture, and establishes a program to expedite the technical
and commercial activities required to complete pipeline development by 2002. The consortium and the governments of
Benin, Ghana, Nigeria, and Togo signed a Memorandum of Understanding on Aug. 11, granting development rights to the
consortium.
"The signing of the joint venture agreement is the first step required of the consortium under last week's accord
with the governments," said George Kirkland, chairman and managing director of Chevron Nigeria Ltd. "Chevron is
immediately mobilising the people required to fast-track this vital project." As announced on Aug. 11, the pipeline
is expected to cost approximately $400 mm and to initially ship about 120 mm cfpd of Nigerian for sale to power
generation customers in Ghana, Togo and Benin.
In addition to delivering much needed energy to this part of the African continent, it is envisioned that the project
will significantly contribute to the economies of the participating nations through the creation of jobs and low-cost
fuel for new industrial and commercial development ventures. Responding to these new demands, the volumes may double
or triple over the life of the project.
The West African Gas Pipeline project will reduce greenhouse gas emissions by cutting down on flaring associated with existing oil production in Nigeria. Air pollutants will be further reduced because natural gas will replace the use of fuels that are less "friendly" to the environment in power generation and industrial production. "The WAGP project dovetails perfectly with Chevron's phased development of its Escravos Gas Project, and embodies our commitment to commercialise the vast natural gas resources of Nigeria," Kirkland concluded.
The participants in the development consortium are: Chevron Nigeria Ltd.; Ghana National Petroleum Corp.; Nigerian National Petroleum Corp.; The Shell Petroleum Development Company of Nigeria Ltd.; Societe Beninoise de Gaz S. A.; and Societe Togolaise de Gaz S. A.