The Nation Newspaper

Tag: WAGPCo

  • ‘WAGPCo, now a success story’

    West African Gas Pipeline Company (WAGPCo), a gas transportation firm, has started recording success after initial challenges. The General Manager, Corporate Affairs Department, Mrs Harriet Wereko-Brobby, spoke with EMEKA UGWUANYI

    What is the journey so far with WAGPCo?

    Honestly speaking, things have developed since the last time we met. Things have developed for us at West African Gas Pipeline Company Limited, and those that have followed our history from the time we started, will realise that we have had challenges with gas supply, pipeline breaches here and there. Now, we can say things have greatly improved for us. We started off with one shipper, N-Gas Limited, a company owned by the Nigerian National Petroleum Corporation (NNPC), Shell and Chevron and now we have registered other shippers on the pipeline.

    Currently we have about five shippers registered with us on the pipeline and recently we signed an agreement with one of them, Axxela Limited.  This is a wonderful progress report. The agreement will ensure that very soon they will also flow gas through the pipeline. So, that is something that has happened. Our operation team has also been able to make some modifications in our stations. Before, we were restricted on the amount of gas we can release, so anytime that pressure is low we were disadvantaged because gas couldn’t flow. So they made some modifications and because of it we can flow any amount of gas that is nominated.  So, that has helped us a lot.

    We have also expanded the Tema station; you know Ghana is our largest off taker and Ghana has discovered oil and gas in the Takoradi area. So, they have also decided to use their gas in the Takoradi area. The initial concept was that Takoradi will be the main offtake point. So, the off taker in Ghana decided to take off gas from Tema. So, they even funded the Tema station. Right now that station has been expanded, it can even take more than we were giving Takoradi. So, right now, we are in a good position.

    What about the legacy debt of $160million owed N-Gas?

    Last time we talked about legacy debt, we mentioned that Volta River Authority (VRA), the off taker owed for gas supplied, now that has improved greatly, about more than 50 per cent of the debt has been paid.  And there is no accumulation of debt anymore. Right now, the off taker is paying for the gas it consumes.  So, for the legacy debt, they have started paying off.  They informed us that they were going to pay off the balance by this month, but it doesn’t look like that will happen this year. We are hoping that they will go ahead and settle the rest of the debt, sometime next year, probably first quarter in 2019. But, in the meantime the off taker is paying for all the gas it is consuming. So, we are making money through the delivery of gas right now, and because of that we have been able to honour our obligations to our stakeholders. Because of our past challenges we have not been paying our shareholders, but this year, we have made quarterly payments that we are supposed to make.

    So, things have improved greatly in our company. Apart from that, Ghana decided that it will move their gas from the west to the east for it to be used in the Tema area, so they are connecting into the West African Gas Pipeline (WAGP) in the west, so that Ghana’s gas from the west can also flow through the pipeline to off takers in the East of Ghana. In brief, this is what we have achieved this year and to be candid, our shareholders and board have been excited at the level of progress we have made so far this year. It all started last year, but a lot of work was accomplished this year.

    We are hoping that when we publish our corporate social responsibility efforts, we will be able to talk of our achievement in other areas. It is important to note that the flow of gas in other sub-region has not affected or has an adverse impact on the need for gas in Nigeria. It is a concern because the sub-region includes Nigeria. So, when you are talking about natural gas for generation of power, we need to think of the countries in the sub-region, which includes Nigeria.

    What is the level of agreement, which WAGPCO signed with Axxela limited?

    It is expedient to mention that Axxela is just a shipper like N-Gas is a shipper, so they have their sources of natural gas supply and they will flow it through the West African Gas Pipeline (WAGP). They have their off takers, different from N-Gas, one of the organisations in Togo, is one of their off takers. Their off taker is taking more now than the CEB is taking now. Axxela is prepared to transport over 15 million standard cubic feet per day (mmscf/d) of natural gas via the West African Gas Pipeline (WAGP) to Lome, Togo while CEB in Togo is prepared to take about five million standard cubic feet per day of natural gas.  That is something positive, we are hoping that after signing the agreement, they will start transporting and shipping the gas very soon. Hopefully this will happen in 2019.

    Do you consider Ghana’s gas a threat to WAGPCo?

    You know, we have challenges, it is not only Ghana; the requirement of gas for Nigeria was also a threat. So, the important thing is to be proactive and try to make the company relevant and that is why we have the western interconnection for example. We have our intelligence on ground, immediately we had the information that Ghana wants to take gas from the west to the east, they were planning to build a pipeline,  so we went to them and tell them that there is one in place and why try to build another one.

  • Shippers set access to gas pipeline

    Shippers set access to gas pipeline

    •Constitutes committee to explore possibilities

    The West African Gas Pipeline Company (WAGPCo) has opened its pipeline to be accessed by independent gas shippers to maximise the potential of the facility, which  has been underused over the years.

    Its General Manager, Corporate Affairs, Mrs. Harriet Wereko-Brobby, said the management decided to open the facility so that there should be additional gas to fill it.

    Data show that the capacity of the pipeline is 474 million standard cubic feet of gas (mmscf) but the contractual volume signed with the foundation customers is 134mmscf, which is about 170 million British thermal unit Btu. British thermal unit is used to measure the energy of gas, that is, the caloric value (heat content), while the volume of gas is measured in standard cubic feet.

    She said what the company wants to achieve by opening access to the asset is to put into use a substantial part of the unused capacity. The data obtained by The Nation, shows that even if the entire foundation customers’ volume of 134mmscf is fully utilised, there is still 340mmscf unused capacity. Therefore, by opening access to the pipeline, the company tries to encourage independent gas shippers to buy gas directly from producers, that is, oil companies in Nigeria such as Shell, Chevron, Seplat, Total, among others, after which WAGPCo will transport the gas to the shipper’s destination in Togo, Benin Republic and Ghana.

    However, such shippers, according to WAGPCo, will be registered and licensed, and must meet all the necessary requirements and standards needed by the regulator, West African Gas Pipeline Authority (WAGPA).

    WAGPA regulates WAGPCo as the Department of Petroleum Resources (DPR) regulates the Nigerian oil and gas industry, so before WAGPCo moves gas for a shipper, the shipper must have a licence, have the gas, demonstrate ability to meet specification, and ensures meeting all the requirements.

    Mrs Wereko-Brobby said: “What we have been doing is encouraging and working with our stakeholders, that is, those for whom we transport gas to enter into arrangement with the producers of that gas so that we would be able to fill our pipeline. Some of them in Ghana, Togo and Benin Republic, have started engaging with gas producers in Nigeria trying to get contract memoranda of understanding so that they would be able to get additional gas to fill our pipeline.

    “At the same time we are continuing our engagement with those protecting our pipeline. We have had two forums; we brought together the stakeholders, subject matter experts from different organisations, naval forces, maritime and ports authorities from different countries. They all came together, sat down and talked about what can be done and how to protect the pipeline. And they also indicated their interest in protecting the workers giving instances of pirates that are not only dangerous to WAGPCo but also all the companies that have formations in the sea. So in the sub-region and even on the ECOWAS’ level, they have assured that it is a matter of highest priority to protect the pipeline and all the nations are collaborating to do that.

    “We brought them together so that we can discuss not only the physical protection but any technological advancement that we can take advantage of.  The success of WAGPCo is very important to ECOWAS. What they feel is that if WAGPCo succeeds, that means all other efforts for regional integration can succeed, so they are very interested in WAGPCo success as a way of making sure that we will have a framework for regional integration programme.

    “We also have a committee set up right now that will set forward the programme. The committee will try and come up with different methods of protecting the pipeline and also ensuring the reliability.

    “The committee is now developing its terms of reference and the expectation is that the terms of reference will be prepared by next month. Once members of the committee come up with their terms of reference, which will be within the next six months to one year, they should have come up with a plan, which will be commenced immediately after. Some of the actions that were identified at that forum such as physical patrol have been started.”

  • Shippers set access to gas pipeline

    •Constitutes committee to explore possibilities

    The West African Gas Pipeline Company (WAGPCo) has opened its pipeline to be accessed by independent gas shippers to maximise the potential of the facility, which  has been underused over the years.

    Its General Manager, Corporate Affairs, Mrs. Harriet Wereko-Brobby, said the management decided to open the facility so that there should be additional gas to fill it.

    Data show that the capacity of the pipeline is 474 million standard cubic feet of gas (mmscf) but the contractual volume signed with the foundation customers is 134mmscf, which is about 170 million British thermal unit Btu. British thermal unit is used to measure the energy of gas, that is, the caloric value (heat content), while the volume of gas is measured in standard cubic feet.

    She said what the company wants to achieve by opening access to the asset is to put into use a substantial part of the unused capacity. The data obtained by The Nation, shows that even if the entire foundation customers’ volume of 134mmscf is fully utilised, there is still 340mmscf unused capacity. Therefore, by opening access to the pipeline, the company tries to encourage independent gas shippers to buy gas directly from producers, that is, oil companies in Nigeria such as Shell, Chevron, Seplat, Total, among others, after which WAGPCo will transport the gas to the shipper’s destination in Togo, Benin Republic and Ghana.

    However, such shippers, according to WAGPCo, will be registered and licensed, and must meet all the necessary requirements and standards needed by the regulator, West African Gas Pipeline Authority (WAGPA).

    WAPA regulates WAGPCo as the Department of Petroleum Resources (DPR) regulates the Nigerian oil and gas industry, so before WAGPCo moves gas for a shipper, the shipper must have a licence, have the gas, demonstrate ability to meet specification, and ensures meeting all the requirements.

    Mrs Wereko-Brobby said: “What we have been doing is encouraging and working with our stakeholders, that is, those for whom we transport gas to enter into arrangement with the producers of that gas so that we would be able to fill our pipeline. Some of them in Ghana, Togo and Benin Republic, have started engaging with gas producers in Nigeria trying to get contract memoranda of understanding so that they would be able to get additional gas to fill our pipeline.

    “At the same time we are continuing our engagement with those protecting our pipeline. We have had two forums; we brought together the stakeholders, subject matter experts from different organisations, naval forces, maritime and ports authorities from different countries. They all came together, sat down and talked about what can be done and how to protect the pipeline. And they also indicated their interest in protecting the workers giving instances of pirates that are not only dangerous to WAGPCo but also all the companies that have formations in the sea. So in the sub-region and even on the ECOWAS’ level, they have assured that it is a matter of highest priority to protect the pipeline and all the nations are collaborating to do that.

    “We brought them together so that we can discuss not only the physical protection but any technological advancement that we can take advantage of.  The success of WAGPCo is very important to ECOWAS. What they feel is that if WAGPCo succeeds, that means all other efforts for regional integration can succeed, so they are very interested in WAGPCo success as a way of making sure that we will have a framework for regional integration programme.

    “We also have a committee set up right now that will set forward the programme. The committee will try and come up with different methods of protecting the pipeline and also ensuring the reliability.

    “The committee is now developing its terms of reference and the expectation is that the terms of reference will be prepared by next month. Once members of the committee come up with their terms of reference, which will be within the next six months to one year, they should have come up with a plan, which will be commenced immediately after. Some of the actions that were identified at that forum such as physical patrol have been started.”

  • WAGPCo to engage Navy in pipeline protection

    The West African Gas Pipeline Company (WAGPCo) is to engage the services of the Nigeria Navy for the protection of its pipeline as the firm prepares to resume operation.

    The vandalism of its pipeline near Lome in Togo has kept the firm out of operation for over seven months.

    The General Manager, Corporate Affairs of the company, Harret Wereko-Brobby, told The Nation during the facility tour of the company in Badagry, Lagos that it would engage the Navy of the four countries (Nigeria, Benin Republic, Togo and Ghana) where the company’s pipelines passed to protect the facility from vandalism and attack.

    Specifically, she said the Nigerian Navy will be engaged to help protect the pipeline against sand mining, adding that the arrangement would be extended to protect the offshore aspect of the pipeline. The company has lodged several complaints about the activities of sand miners in the Lagos area of its operation, which it said threatens the safety of the pipeline.

    On conclusion of the arrangement, a combined team of Naval officers from Ghana and Togo would work with their Benin Republic counterparts to patrol the pipelines. She also said WAGPCo would work with the ministry to engage the Naval authorities so that there would be sub-regional cooperation to protect the entire pipeline in the offshore installation

    She said: “It is necessary because we want to make sure that the ships and the fishing community respect the pipeline protection zones that we have. It is compulsory for us to keep them from anchoring close to the pipeline so that similar damage does not occur again. We hope that through this arrangement, the pipeline would be protected against damage.”

    She said the company would continue to have periodic engagement with the media to inform the public about the progress of the company activities.

    “Because there is action going on towards the re-commissioning of the pipeline and some of the activities, we felt that we should bring you here to come and see what is going on and for you also to see that there is no flaring going on here,”she said.

    She said the Department of Petroleum Resources (DPR) and the Lagos State Environmental Protection have confirmed that the gas flaring that occurred as part of cleaning the pipeline in preparation for resumption of operation was within allowable limit.

    The WAGPCo Station Supervisor, Agboola Olugbenga, said the company has made remarkable progress in its efforts to bring back the pipeline into service. He said the re-inauguration of the gas pipelines has been contracted out. He added that the company is committed to ensuring that the water and debris that got into the pipeline are completely removed.

    He said: “What we are doing now is the final cleaning base. We need this gas pipeline to be as clean as possible because we don’t want to supply gas that is out of specification to our customers. It is very good for us to ensure that the pipeline we would be using for our business is very clean. The pipeline has been repaired we need to clean out all the dirt that would have gone inside when the pipeline was exposed under the sea.”

  • Gas flaring: Lagos clears WAGPCo

    Gas flaring: Lagos clears WAGPCo

    •Firm may resume operation this month

    The West African Gas Pipeline Company (WAGPCo) has been absolved of the reported gas flaring at its Lagos Beach Compressor Station (LBCS) at Badagry.

    The gas flare was said to have caused environmental and health hazards within Itoki community and environs where the compressor is situated.

    It was as a result of the gas flare report that the Lagos State Government mandated the Lagos State Environmental Protection Agency (LASEPA) that carried out a thorough investigation to confirm the veracity of the report and magnitude of the impact of the flaring on the communities within the facility.

    The report of LASEPA’s visit to the LBCS, which was obtained by The Nation, showed that five officers, including Ogunleye Abiodun, Okeleye Olusegun, D. K. Adeyemi, M. A. Akinjeji and Lewis Gregory Adeyemi, were members of the LASEPA team while the WAGPCo team comprised Olugbenga Agbola, Romeo Obaye and Egbe Jude.

    The LASEPA team, it was learnt, carried out both day and nocturnal tests at the LBCS on separate days to determine if the level and intensity of flared gas during the day were different from those done at night. This was because the communities said that whenever they cried out, WAGPCo would reduce the level of flared gas.

    But the LASEPA team led by Ogunleye, which paid an unscheduled visit to the facility on February 15, this year, after receiving WAGPCo’s last year third and fourth quarter environmental reports, carried out the day test at LBCS to establish WAGPCo’s compliance standard on alleged persistent gas flaring by some members of the public. The team after the test made their findings.

    However, following a subsequent joint meeting with the LASEPA General Manager, and a Director, Mrs. A. W. Onisarotu, there was a request to conduct a night test at the LBCS, which was carried out on February 19, this year. Ogunleye said the essence of the night monitoring was to establish the fact that both day and night are incompliance with the statutory environmental standard.

    Following their findings, he buttressed the fact that the public outcry could be that most people may not have an appreciative understanding of the operation of a company such as WAGPCo, hence the complaints. He added that as environmental regulators, they are in a better position to clear all the grey areas. He also dismissed earlier report that there was presence of heavily armed security personnel, which made people unable to gain access to WAGPCo’s facility.

    He said: “If we were not at the site on Friday, 15th February, 2013 unannounced, we would have assumed that WAGPCo demobilized the security force due to our proposed visit.”

    According to the report, Romeo Obaye and Olugbenga Agboola gave further enlightenment on the compliance position of WAPCo with respect to the flaring. They also presented previous reports by an external auditor certified by both the Department of Petroleum Resources (DPR) and LASEPA.

    Besides, Ogunleye and his members confirmed that the external auditor is well known to them and requested that in future, they should be carried along from the on-set so that they will also assist in the sensitisation exercise since they stand to be believed and understood better than hearing from the company’s officials.

    It was gathered that both WAGPCo and the LASEPA teams took temperature readings within and outside the plant, which they confessed were in line with the required standard. The teams also went to the communities to take readings and meet with the community leadership.

    The community leaders at the meeting include the Chairman, Council of Chiefs, High Chief Agbesanga, who deputises as the community paramount ruler, Dr. S. Amosun – community opinion leader, High Chief Vokor, High Chief Hunga, Youth Vice President – Saheed Isiaka, Misimau Ajasa – youth assistant secretary, and Chief Akibu, the Baale in the community.

    Ogunleye explained to the community leaders of their findings on Friday, February 15, and February, 19, this year. He pleaded with them not to envisage any environmental concern now or in future since their readings indicate that WAGPCo flaring operations are in line with the statutory approved standard. He told the community leaders that if there were hazards, WAGPCo personnel will not be excluded from the impact since they are also in the community.

    But Dr. Amosu, it was learnt, said he is a qualified health physician and based on his research, such impact may not manifest until about 20 years of which most of the existing generation would have gone. He added that as long as ionisation was not considered in the readings they took, he doubts if the findings could be taken hook line and sinker by the community. High Chief Vokor also supported his view.

    However, after due explanation on the mechanisms and control systems deployed by WAPCo in the flaring operation to ensure adequate regulatory compliance standard, the concerns of the community were allayed. But they said that the WAPCo team reduces the flare each time they raised the alarm on too much heat.

    Amosu and the chairman, Council of Chiefs, however, attested that the community executives were informed about the flaring by the WAGPCo team, but complained that the notice was too short. He requested for a minimum of two weeks prior to commencement of the flaring in future. LASEPA team also requested for adequate sensitisation and their involvement in future.

    The LASEPA team used the opportunity to visit some of the community development projects (CDPs) in Ajido and expressed their joy on WAGPCo contribution to the community. They suggested that a lot of publicity should be made during the inauguration of the clinic so that outsiders will know the contribution of WAGPCo to one of their major host communities.

    The flaring issue started when WAGPCo’s 20’ main line broke into two on August 28, last year at Lome, Togo during a skirmish between the Navy and a third party vessel, which dragged anchor across Anchoring Exclusion Zone, and caused the damage. Necessary actions and repair processes have since been done by WAGPCo but the pipe needs to be cleaned before normal operation resumes, which involves a measure of flaring.

    Sea water entered the line when it was broken and also de-pressurised it. It was in the process of removing the water, contaminated gas and debris in the line that brought about the alleged gas flaring.

    The company had expected to fix the pipe and commence operations last December but in order to ensure that adequate and standard repairs and safety measures were observed, normal operation is expected to resume this month, it was learnt.

    The WAGPCo owns and operates the West African Gas Pipeline (WAGP) with headquarters in Accra, Ghana and an office in Badagry, Nigeria. It also has field offices in Cotonou – Benin, Lome – Togo, Tema and Takoradi, both in Ghana.

    WAGPCo is a joint venture between public and private sector companies from Nigeria, Benin, Togo and Ghana.

    The company’s main mandate is to transport natural gas from Nigeria to customers in Benin, Togo and Ghana in a safe, responsible and reliable manner, at prices competitive with other fuel alternatives.

    WAGP transports purified natural gas free of heavy hydrocarbons, liquids and water, ideally suited as fuel for power plants and industrial applications. Eighty-five per cent of the gas is for power generation and the remaining for industrial applications. The Volta River Authority’s Takoradi Thermal Power Plant in Ghana, CEB of Benin and Togo are WAPCo’s foundation customers.

    WAPCo is owned by Chevron West African Gas Pipeline Limited (36.7 per cent); Nigerian National Petroleum Corporation (25 per cent); Shell Overseas Holdings Limited (18 per cent); and Takoradi Power Company Limited (16.3 per cent), Societe Togolaise de Gaz (2 per cent) and Societe BenGaz S.A. (2 per cent).

  • WAGPCo may lose $72m to pipeline damage

    The West African Gas Pipeline Company (WAGPCo) may lose about $72 million to a damaged pipeline, which has stalled company’s operation since August 28.

    The Managing Director,. Charles Adeniji, told reporters in Lagos that the development has affected the company’s revenue which he put at between $500,000 and $600,000 daily.

    He however assured that operation may resume before end of the year.

    Considering the daily loss of revenues, the firm’s deficit may hit $72 million before end of the year when the repairs and re-commissioning of the project would take place.

    He said: “The incident impacted our revenue generation. We have not worked since August 28. It also diverted our attention from executing planned projects. For instance, the stakeholders’ forum that aimed at bringing buyers and sellers together to know how to improve market. It halted our market development efforts.

    On the fate of consumers of the company’s product such as Ghana power plant, he said that power plants usually have dual fuel supply system, noting that the management of the power plants can retrofit the machines to use other fuels such as light crude, diesel, among others.

    In his presentation, the WAGPCo chief said the pipeline damage occurred close to the Lome

    lateral and the 20″ main line. He said the Togolese Navy advised that a skirmish between the Navy and a third party vessel had occurred around 0200hrs on that day and the vessel dragged anchor across Anchoring Exclusion Zone and broke the pipeline.

    As a result of the incident, pressure drop was observed in the control and in all the stations and the company shut-in the pipeline system to prevent further loss and impact to the marine environment and made required notifications to key stakeholders- West African Gas Pipeline Authority (WAGPA), Nigerian Gas Company (NGC) directors, World Bank among others and WAGPA – notified sub-regional energy ministers, he noted.

    He said: “WAPCo will work towards getting back operations as soon as possible. Will notify media as we progress the repair. We discovered that the concrete coating of the pipeline had been cracked.

    “We have set up the Operations Task Force to develop and execute the pipeline repair project and have met every day since August 28, 2012. We have also hired a vessel – the MT Contender – to survey the seabed looking for damaged joints of the pipeline, which commenced since September 6, 2012.

    “Identified observable concrete cracking about 10 nautical miles west of the Lome T-junction- 0028hrs/ September 7, 2012 and damage was identified at coordinate- 05degrees  57,39 N& 001 degree 18,19E. We also discovered that the pipeline had been broken into two parts.

    “Saturation divers, clearly identified a clean break of the 20” main line at the damage location by 1700hrs on 7 September 2012. The 20″ pipe had been severed into two parts. The east severed end had been moved/ dragged 10 metres off the original position. The west end had been dragged 15 m.

    “For completeness the Contender was instructed to survey 2km west and east of the damaged point (of severance). No further damages had been found. Divers reported six sections of the main pipeline damaged and are consequently recommended to be replaced”

    He said the management has commenced pipeline repairs and that divers have removed the damaged pipe joints. He said that each joint was cut and set aside and would be lifted up unto the construction barge for disposal, while the remaining pipe ends have been aligned back to their original positions.

    He said they are preparing the end of the pipe, to receive replacement fabricated pipe spool and construction barge has been hired since September 24, 2012, which is equipped with crane, welders, pipe and machines and six pipe joints loaded on the barge.

    He said: “After repairs, we will re-commission the WAGP pipeline, remove water and debris in the line because sea water entered the line when broken and de-pressurised.

    “Line scraper, called “pigs” will be inserted into and launched at one end of the line to remove water which will be received at the other end. Pigs will be run several times to ensure that the line is clean. Dry the line and then introduce gas.”