Power Regional Integration through Market-Enabled Gas

pipeline

Cote d’Ivoire, Benin, and Togo rely heavily on natural gas for electricity generation, yet existing supply—domestic in Cote d’Ivoire and imports from Nigeria via the West Africa Gas Pipeline for Benin and Togo—has been insufficient to keep pace with rising electricity demand and industrialization. This shortfall has forced countries to use costly liquid fuels, deepening financial deficits in the power sector. To address this vulnerability, all three countries have integrated gas‑security objectives into their national energy strategies. With recent discoveries, Cote d’Ivoire is expected to triple domestic gas production by 2031, offering the potential not only to meet local needs but also to supply electricity exports within the sub‑region. In the near term, Cote d’Ivoire plans to supplement supply through LNG imports and Benin and Togo expressed interest in pooling LNG procurement with Cote d’Ivoire to diversify away from Nigerian gas and meet growing demand. This short‑term joint initiative is envisioned as the first step toward a broader regional program to expand gas and electricity infrastructure and strengthen integration across the three countries.This regional project aims to provide technical assistance and kickstart initial investments to help countries carry out the necessary preparation for the implementation of their short, medium, and long-term gas strategies, at both the national and regional levels. This could provide a foundation for a subsequent multi-phase approach (MPA) that supports the implementation of these strategies, which includes, in the first stage, direct loans for import infrastructure and payment/trade finance guarantee for imports, and eventually extending to gas and electricity infrastructures between the three countries to enhance regional integration in the medium to long term. The proposed PRIME-GAS Project supports Cote d’Ivoire, Togo, and Benin in strengthening the security, affordability, and reliability of natural gas supply for electricity generation and industrial development. The operation combines short-term supply solutions with medium- and long-term infrastructure preparation and strategic planning. Component 1 finances immediate gas import solutions, including preparation of LNG procurement and long-term gas supply contracts, transaction advisory for Floating storage and regasification units terminals (FSRU) leasing, and logistical arrangements for small-scale LNG delivery from Cote d’Ivoire to Togo and Benin. It also supports establishment of legal and regulatory frameworks for gas imports and finances limited small-scale infrastructure in Benin, notably expansion of the Cotonou Regulating & Metering (R&M) station and refinancing of the 30-km pipeline linking Maria Gleta power plant to the Glo-Djigbe Industrial Zone (GDIZ). Feasibility and environmental and social (E&S) studies for onshore receiving facilities and due diligence for potential guarantees will also be undertaken. Component 2 supports preparation of medium- and long-term national and regional gas infrastructure, including feasibility and E&S studies, procurement preparation, PPP structuring, and due diligence for subsequent financing. This includes expanding gas transmission and distribution infrastructure in Cote d’Ivoire, Togo and Benin, integration of Cote d’Ivoire in the West Africa Gas Pipeline, and gas-to-power infrastructure. Component 3 finances project management support and development of national Gas Master Plans, a Regional Gas Strategy, integrated gas-electricity least-cost planning, and institutional capacity building for domestic gas value chain and regional gas trade.