Net WAGP economic benefit requires Ghana development

Abstract

In order to take advantage of the potential of the 470-MMcfd WAGP (West African Gas Pipeline), Ghana will require various developments, including the completion of its domestic pipeline infrastructure. In addition, there is a need to finalize commercial arrangements between industrial users and the supply company and both the West Africa Pipeline Co. and natural gas producers in Nigeria. There will naturally be an effect on natural gas' large-scale introduction to the Ghanian energy market both in preparation for and upon WAGP's entering service. For one, the natural gas' entrance into the economy will not necessarily displace all fuel-oil demand. In terms of electricity for the industry, since power in Ghana has no constant demand, such a fluctuation in load may cause problems for the natural gas distribution company. In terms of filing stations, for instance in Accra, placing new filing stations will need an expansion of the gas pipeline network as well.