The West African Gas Pipeline Company (WAGP) needs about 700 million standard cubic feet per day (mmscf/d) to meet regional demand, it was learnt at the weekend.
According to data obtained by The Nation, the management of the gas transport firm is brainstorming on how to close the demand gap.
Some of the plans being discussed to address the supply challenges include repositioning WAPCo for dynamic market through the facilitation of multiple shippers operating under the open-access regime. This is a policy aimed at promoting access to WAGP markets for gas producers, shippers and liquefied natural gas (LNG) project developers.
Most importantly, the company wants to review its tariff structure by transiting from single postage stamp to a more robust and flexible tariff structure by January 1, 2019.
The transition to flexible tariff structure will help diversify and attract new robust supply through substantial gas supply from Western Ghana and supply from the Nigeria’s Escravos Lagos Pipeline System (ELPS).
According to the WAGP, ELPS’ supply remains key to its operation.
The planned repositioning would attract new supply from Western Nigeria, the company stated, noting specifically that gas supply from Aje field will play significant role in this respect. The oil field is located 24 kilometres offshore Lagos in water depths of about 1,476 feet is in oil mining lease (OML) 113 and is operated by Yinka Folawiyo Petroleum Company Limited.
The repositioning is also looking at capturing re-gasified LNG for transport through WAGP, adapting WAGP configuration to reflect changing supply and demand patterns, transitioning to a bi-directional pipeline system to increase capacity accommodating new entry points and developing pipeline capacity to accommodate increased utilisation.
The company’s official, Fredy Horace Seho, who spoke at an event in Lagos, confirmed the development.
He said the interventions were to simplify the process of application for new shippers, expand Ghana’s capacity interconnection with its gas pipeline system, increase supplies from the Nigeria ELPS and monitor the development of sub-regional LNG import scheme and capture transport through WAGP, among others.
Highlighting the importance of WAGP to natural gas utilisation in the sub-region, Seho said before the company took off, there was significant undeveloped gas market resulting in flaring of substantial gas flaring.
He added that natural gas was missing from the energy balance until the 2000s, stressing that there is now an increased domestic gas consumption due to major infrastructure development and reduced gas flaring, among others
WAGP assets cut across Nigeria, Benin, Togo and Ghana. Its has about 174mmscfd with expansion plan of 474mmscfd.
Regulating and metering stations in Itoki, Badagry (Nigeria), Cotonou (Benin), Lome (Togo), and Tema and Takoradi (Ghana) as gas delivery points.
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