Gas pipeline project to begin next March

Aboadze (W/R), Jul 12, GNA - The construction of the estimated 500 million-dollar West African Gas pipeline to stimulate economic development in the sub-region would begin in March 2004.

Twelve companies have submitted tender applications for consideration to undertake the 620-kilometer project to transport natural gas from Alagbado in Nigeria to delivery points in Benin, Togo and Ghana.

Mr. Kofi Asante Okai, External Affairs Manager of the Project, owned by the four countries and a consortium led by Chevron Texaco of USA, speaking at a stakeholders meeting at Aboadze near Takoradi on Friday said the construction of the pipeline would be completed within 18 months.

The meeting was to deepen the awareness of stakeholders, solicit feedback on an earlier report and to educate them on key safety features of the project.

Chiefs, assembly members, journalists, environmentalists, as well as representatives of some private and public institutions attended the meeting.

According to Mr. Okai, 90 per cent of the 15-inch diameter pipeline would be laid between 16 and 26 kilometers offshore and about 75 meters deep in the seabed.

He said the project was viable, adding that, Nigeria had 160 trillion natural gas reserves to supply the sub-region for more than 2200 years. Depending on funding, the project, which could produce 200 million standard cubic feet of gas per day and 450 million standard cubic feet at peak production, could be extended beyond Takoradi to other countries in the sub-region.

Mr. Okai said 85 per cent of natural gas production would be used for electric power generation while the remaining 15 per cent would be utilised by local industries.

When completed, the project would secure cheap and reliable alternative for skilled and unskilled labour.

The Takoradi Thermal Power Plant would make about 100 million dollars savings annually on production cost when it begins to use natural gas to generate electricity.

Mr. Okai said Tema, the industrial hub of Ghana, would provide the largest market for natural gas in the sub-region within the next 20 years.

Mr. George Dapaah of the Environmental Solutions Limited, Consultants on the project, said findings of previous studies were within the ranges of WHO guidelines.

The next phase of the Environmental Impact Assessment study would end in October this year to secure Environmental Permit for the project.