The West African Gas Power Company (WAPCo) has moved its expansion plans a step forward, haven signed a new contract with Energy Firm, Penspen.
The Pipeline network expansion contract covers the examination of WAGP?s performance since its completion in 2010 and what measures need to be taken to optimise its operation.
According to a press statement released by both parties? sub-regional bloc, Economic Community of West African States (ECOWAS) has approved a feasibility study contract to examine West African Gas Pipeline (WAGP) system performance and possibility of network extension to the community states.
This is expected to boost economic integration among the West African states, with plans to expand the gas pipeline network in the sub-region for improved business activities in the sub-region.
The feasibility study work according to the release includes a technical and economic analysis of the extension of the pipeline.
?Market assessments will be made of possible ECOWAS countries to consider where network extension can be substantiated and estimates of the required investments will be made to quantify costs and benefits,? the release explained.
The study is planned to take 18 months and will include a number of validation workshops to review progress and study results involving experts from ECOWAS member states and sub-regional institutions.
?The signing of the contract for this significant study marks yet another occasion where the critical early phase abilities and experience of Penspen has been recognised by multinational clients.
This study builds on our established work and reputation gained for other feasibility study work on major projects such as Kampala-Kigali, AGRI, TAPI and Trans-Sahara,? The Chief Executive Officer of Penspen, Peter O?Sullivan said commented.
There are fifteen member states of ECOWAS covering an area of over 5.1 million square kilometres (km) with an estimated population of about 300million.
West African Gas Pipeline (WAGP) is a natural gas pipeline to supply gas from Nigeria?s region of Niger Delta area to Benin, Togo and Ghana. It is the first regional natural gas transmission system in sub-Saharan Africa with a total distance of 678 km, with 569 km offshore.
Ghana had early this year lamented the extra costs incurred to run its Volta River thermal plant, due to unreliable gas supply from Nigeria through the WAGP.
The Four West African nations including Nigeria, Ghana, Benin and Togo had entered into an agreement on gas supply through the WAGP, to boost power generation and industrialization of the West African corridor.
Meanwhile, The Nigerian National Petroleum Corporation (NNPC), said the Nigerian government was committed to ensuring that the WAGP became more functional.
The NNPC said Nigerian government had put in place numerous measures at the national and international levels to ensure that the project was beneficial to the sub-region.