West African Gas Pipeline Company Ltd

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West African Gas Pipeline Company Limited (WAPCo) was created to implement the West African Gas Pipeline Project (WAGP), which had an estimated cost of US $ 590 million. The project consisted of (a) a new pipeline system (678 km long) that would transport natural gas from Nigeria to Ghana, Togo, and Benin; (b) spurs to provide gas to power generating units in Ghana, Benin, and Togo; (c) conversion of existing power generating units to gas; and (d) as needed additional compression investments. To meet the expected market potential of about 450 million standard cubic feet per day (MMscf/day), the new pipeline was designed with 20 inches in diameter. West African Gas Pipeline Company Limited (WAPCo) was owned by ChevronTexaco West African Gas Pipeline Company Ltd (38.2%), Nigerian National NNPC (26.0%), Shell Overseas Holdings Limited (18.8%), and Takoradi Power Company Limited (as shareholder for the Government of Ghana) (17.0%), Societe Beninoise de Gaz SA (2%), and Societe Togolaise de Gaz SA (2%). The initial US$590 million cost was to be financed through direct equity and shareholder loans to WAPCo from the Sponsors, and the subsequent compression-related capital expenditures are expected to be financed by cash flow from operations. WAPCo would recover its investments through gas transportation charges under its Gas Transportation Agreements (GTAs) with N-Gas and other future shippers. The project was marked as reaching financial closure in 2005 when the private project sponsors received guarantees on their equity participation from MIGA and payments from IDA. In April 2008, the West African Gas Pipeline Company (WAPCo) commenced the commissioning of its natural gas transmission system, with the introduction of natural gas into its inlet station at Itoki in Ogun State, Nigeria.