WAGPCo: Nigeria Loses 300,000scf/d To Infrastructure Deficit

Despite its huge gas reserves, Nigeria has failed to meet its 450,000 standard cubic feet per day (Scf/d) supply obligations to the West Africa Gas Pipeline Company (WAGPCo) since commencement of commercial operations 10 years ago.

According to the company’s managing director, Michelle Burkett, with current capacity of 450,000 scf/d, WAGPCo is only able to transport 150,000scf/d, leaving a 300,000scf/d shortfall due to infrastructure challenges.

WAPCo is owned co-owned by Nigeria, Benin, Togo and Ghana in partnership with Chevron West African Gas Pipeline Ltd (36.9%); Nigerian National Petroleum Corporation (24.9%); Shell Overseas Holdings Limited (17.9%); and Takoradi Power Company Limited (16.3%), ‘Société Togolaise de Gaz’ (2%) and ‘Société BenGaz S.A. (2%).

Burkett, speaking in Lagos on Tuesday, regretted that though WAGPCo has available capacity of 450,000scf/d, gas infrastructural challenges in Nigeria have hindered full utilization of its potential, despite the huge appetite for gas in the region.

“Facilities of the West African Gas Pipeline Company Limited (WAPCo), are available to transport gas on behalf of its customers. However, there are some challenges with supply from Nigeria resulting in the shortfall currently experienced by offtakers”, she stated

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) estimated that the country’s total gas reserves is 208.62 trillion cubic feet as at last year,

Burkett who described the company as an example of a successful Public Private Participation (PPP) initiative in West Africa, noted that in 10 years the company recorded over 11 million workforce hours without a recordable accident, transporting gas from Nigeria to Benin, Togo and Ghana through 678 pipelines adding that Africans should be proud of the company.

WAGPCo’s General Manager, Corporate Affairs, Dr. Isaac Adjei Doku noted that, WAPCo looks forward to the speedy resolution of the supply issues between its customers and their gas suppliers in Nigeria and stands ready to transport contract volumes as required.

“WAPCo is an international company transporting Natural Gas in Nigeria, Benin, Togo and Ghana in a safe, responsible and reliable manner to create value for our diverse stakeholders. We place the highest priority on the health and safety of people and protection of our assets and the environment.

Adjei explained that there is currently a supply gap due to infrastructural challenges in Nigeria.

“There is a mismatch between the demand and supplies. This requires huge financial investment. Ghana needs more gas including Togo. What we have is an infrastructure issue.

There’s a real appetite for gas in Togo, Benin and  Ghana. The market is there”, he stated

On corporate social responsibility, Adjei said, WAPCo engages in corporate social investments through partnership with host communities and provides community development projects, and livelihood programmes.

“WAPCo’s host communities are defined as those located within a two-kilometer radius of our on-shore facilities. We have a total of 54 host communities. We have 7 communities in Ghana, 1 in Togo, 13 in Benin and 33 in Nigeria. We initiated annual medical outreaches, investment in communities education infrastructure, screening for chronic health conditions, over 5,000 persons reached each year”, he said

He noted that WAGPCo also initiated

livelihood support programs, skill acquisition and scholarships with over 1,500 benefits. WAGPCo also has partnerships with some Nigerian universities”, he stated