Gas pipeline project treaty signed

Four West African nations have signed a treaty providing a legal and fiscal framework for a US $500-million regional gas pipeline project, news agencies on Monday reported Chevron Nigeria Limited as announcing in Lagos. The heads of state of Benin, Ghana, Nigeria and Togo signed the treaty at a summit of the Economic Commission of West African States (ECOWAS) in Dakar, Senegal that ended on Friday. The treaty "establishes a comprehensive and harmonized legal, fiscal and regulatory framework for the project, including the establishment of a single regulatory authority to oversee project development and operations" of the West African Gas Pipeline, news agencies said. The proposed pipeline would transport natural gas from Nigeria to five cities in Ghana, Togo and Benin. Promoters of the project include Chevron Nigeria Limited, the Nigerian National Petroleum Corporation, Shell, the Societe Beninoise de Gaz (Benin), Societe Togolese de Gaz (Togo), and the Volta River Authority of Ghana. "With the Treaty signed, the consortium will complete pre-development activities, including agreed stakeholder consultations, and seeking approval of the environmental impact assessment and project development plan by the regulatory authority," Chevron said. "Subject to achieving satisfactory commercial and permitting conditions, the consortium forecasts reaching a final investment decision at the end of 2003." Gas delivery from the 620-km pipeline is expected to start in June 2005. Ghana Radio quoted ECOWAS executive secretary, Mohamed Ibn Chambas, as saying the benefit of the project included the reduction of energy cost by between 20 and 25 per cent in Ghana. The project, he added, represented a model of private and public sector investment and an example of West African integration.