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Business News of Tuesday, 11 May 2004

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Sponsors, Energy ministers discuss West African gas pipeline

Cotonou, Benin, 05/11 - Energy ministers from Nigeria, Ghana, Togo and Benin and sponsors began discussions here Monday, on the West African gas pipeline project (PGAO).

The meeting is sequel to an earlier one held last month in Lome, during which a committee was set up to review the cost and market potential of the project.

Also attending the meeting in Cotonou is an official from the secretariat of the Economic Community of West African States (ECOWAS).

The five-phase project is currently in its third phase - definition - and the final decision to invest in it is expected on 31 July, Benin minister of Mines, Water and Power Kamarou Fassassi indicated at the opening of the meeting.

He urged his counterparts to make further sacrifices towards the construction and effective operation of the gas pipeline.

The project, estimated to cost 500 million US dollars, was mooted in 1995 to guarantee safe energy supply from Nigeria`s enormous gas reserves to Benin, Togo and Ghana.

It covers a distance of 800 km from its source in Nigeria to Efasu in Ghana, and will facilitate the exploitation of about 1.13 trillion cubic metres of natural gas for at least 30 years.

The first gas supplies are expected in 2005.