Other regions in Africa advised to adopt WAGP model for effective domestic gas utilization.

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CBN

APO Group - Africa Newsroom / Press release | Redirecting Attention to Domestic  Gas Utilization: The West African Gas Pipeline Serves as a Strategic Model  for Emerging Gas Regions in Africa

Olusola  Bello

 

The model of the West African Gas Pipeline (WAGP) is taking the lead in an effort to ensure effective gas utilization through an inter regional distributive network, industry analysts have said.

They have therefore advised other regional blocs in  the continent  where natural gas is currently been developed to emulate the model for effective optimize the resource.

“Intra-African gas trade models such as the West African Gas Pipeline should be adopted in other emerging natural gas regions such as SADC and CEMAC, as they represent fundamental opportunities for enhanced domestic gas utilization and monetization”

It has therefore been suggested that other regions that want full implementations of gas utilization should not hesitate to adopt the model

“With emerging natural gas markets in Nigeria, Mozambique, Senegal and Tanzania offering new energy sources for regional actors, and the African Continental Free Trade Agreement (AfCFTA) ensuring lucrative trade opportunities across the continent, attention is turning to regional distribution, attention is turning to regional distribution, with models such as the West African Gas Pipeline (WAGP) taking the lead.”

Comprising a 681km natural gas pipeline, the WAGP is the first regional natural gas transmission system in sub-Saharan Africa, linking Nigeria’s gas-rich region of the Niger Delta to neighboring countries Benin, Togo and Ghana. With over 200 trillion cubic feet (tcf) of natural gas reserves in Nigeria, and growing demand across the entire West African region, the WAGP enables the transportation and distribution of critical gas reserves from gas-rich countries to high demand markets, establishing a viable gas network that will accelerate regional energy access.

 

They said WAGP has significantly increased regional gas utilization, with the AfCFTA and the recent passage of Nigeria’s Petroleum Industry (PIB) Bill only enhancing this trend.

Rather than solely focusing on exports to international markets, WAGP operator West African Gas Pipeline Company – comprising a consortium including Chevon West African Gas Pipeline (36.9%), Nigerian National Petroleum Corporation (24.9%), Shell Overseas Holdings Limited (17.9%), Takoradi Power Company Limited (16.3%), Societe Togolaise de Gaz (2%) and Societe BenGaz S.A. (2%) – recognizes the value of increasing regional gas trade, with a high demand regional population and neighboring markets offering fundamental opportunities regarding exports.

The WAGP is a clear example of the success of regional collaboration, and African Energy Week (AEW) 2021, taking place in Cape Town on the 9th-12th of November, will emphasize this.

In addition to the WAGP, there has been notable success in enhancing regional gas networks in the MSGBC region, comprising Mauritania, Senegal, the Gambia, Guinea Bissau and Guinea Conakry.

With major natural gas reserves discovered on the border of Senegal and Mauritania – estimated at 40 tcf – the region has been quick to develop a viable regional market and position Senegal as an African Gas Province. However, the region still requires significant investment if it to fully capitalize on its resources and establish sustainable gas transportation systems. Accordingly, there lies lucrative opportunities for international stakeholders looking at promising African markets, and AEW 2021 will serve as the platform for intra-Africa and global-African engagement. Read fu As a widely available resource in Africa and comprising the ideal transitionary resource in the transition to cleaner energy sources, natural gas has seen an influx of investment and development in recent years, with many stakeholders hoping to use the resource as a catalyst for enhanced energy sector and economic growth.

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