CG Togo

completed

The CG Togo Project (“the project”) is to develop a new natural gas and Heavy Fuel Oil (“HFO”) fired 100 MW reciprocating engine power generation facility located in Lomé, Togo, at Centrale Thermique de Lomé (CTL), an existing oil-fired thermal power station with 90MW capacity developed in 1970s and 80s but not being operational due to technical problems. CTL is located in the industrial zone of Lomé. The project consists of six 18V50DF Wärtsilä engines in a power house with associated auxiliaries and buildings. In October 2006, ContourGlobal Togo SA signed a concession agreement with the government of Togo about rehabilitation, extension and exploitation of the CTL, and in May 2007, the company signed a 25-year power purchase agreement to sell all of the project’s generation to Compagnie Energie Electrique du Togo (CEET - the national distribution company). The project is an extension of CTL and rehabilitation of the existing CTL is not considered part of the project. The project is planned to be fueled by natural gas once this becomes available through the West Africa Gas Pipeline (WAGP). WAGP is a 678 km offshore and partly onshore regional gas pipeline designed to supply gas from Nigeria to Ghana, Benin and Togo, and is being developed with support by the World Bank and the Multilateral Investment Guarantee Agency which approved the project on November 23 2004. The connection from the WAGP gas pipeline to the CTL, including the Regulating and Metering Station, is being constructed by the WAGP developer, and is expected to be completed in late 2009 or early 2010. However, to mitigate the uncertainty in the availability of gas, the project is designed to be able to use not only natural gas, but also Heavy Fuel Oil and Diesel Fuel Oil (tri-fuel design). It is expected that the project will temporarily run on HFO in its initial years of operation given the disruptions of supply of gas in Nigeria. HFO will be delivered from the existing oil pipelines connected to CTL from the neighboring Societe Togolaise de Stockage de Lomé (STSL) storage facility. Wärtsilä Finland OY, the engineering, procurement, construction (EPC) contractor, has started the construction in May 2009 with a targeted start of commercial operation in April 2010. Electricity by the project will be delivered using the existing 161kV transmission lines owned and operated by CEB and CEET’s 20kV transmission line. The CTL site is contaminated by hydrocarbons and other hazardous wastes due to past operation of CTL. Although CGT is not the responsible party for the origin of the contamination, the company is implementing remediation of the contaminated soil as part of the project. The project will provide reliable, economical and diversified source of electricity to Togo. Remediation of contaminated soil from CTL’s past operation will demonstrate a good industrial practice of this type of environmental improvement for Togo and its neighboring countries.