An energy shortage experienced by Ghana, Togo, and Benin in 1997-1998 renewed interest in the pipeline project. In August 1998, a consortium of Chevron, Shell, Nigerian National Petroleum Corporation (NNPC), Ghana National Petroleum Corp. (GNPC), Societe Beninoise de Gaz (SoBeGaz), and Societe Togolaise de Gaz (SoToGaz) signed an agreement commissioning a feasibility study on the West Africa Gas Pipeline (WAGP). The study, which was completed in March 1999, concluded the commercial and technical viability of the WAGP, and projected that it could be operational as early as 2002. On August 11, 1999, in Cotonou, Benin, a Memorandum of Understanding was signed by the four countries and the consortium establishing the legal framework for the WAGP. The Joint Venture Agreement naming Chevron as the WAGP project manager was signed on August 16, 1999 in Abuja, Nigeria. In February 2000, the four nations signed an Inter-Governmental Agreement (IGA) which established the framework for realizing the pipeline venture. The IGA includes the governments commitments to the pipeline owners and gas distributors on the conditions for the development, construction and operation of the WAGP, as well as fiscal and customs policies for the venture. The project has received administrative support from the ECOWAS Secretariat and technical assistance ($1.55 million) from the United States Agency for International Development (USAID).

In June 2002, A gas supply agreement for Ghana's Takoradi power plant was signed. The gas is expected to significantly reduce boiler-fuel costs at Takoradi by substituting gas for oil. In February 2003, The four nations signed an agreement on the implementation of the WAGP. The treaty, which is for a 20-year period, provides for a comprehensive legal, fiscal and regulatory framework, as well as a single authority for the implementation of the project. The WAGP partners are ChevronTexaco with 36.7%, NNPC with 25%, Shell with 18%, Ghana's Volta River Authority (VRA) with 16.3% and SoBeGaz and SoToGaz each with a 2% interest.

Project Details
The WAGP will traverse 620 miles (1,033 kilometers) both on and offshore from Nigeria's Niger Delta region to its final planned terminus in Ghana. The first portion of the pipeline, which will deliver gas to the greater Lagos area (Alagbado), is already in existence. The Escravos-Lagos pipeline (ELP) was commissioned in 1989, supplying natural gas to Nigeria's Egbin power plant and other industrial consumers in Lagos and Ogun States. ELP has a capacity to handle nearly 900 million cubic feet per day (Mmcf/d) of natural gas, but currently the majority of this capacity is not utilized. A 34-mile (57- kilometer) onshore portion of the WAGP will run from Alagbado to Seme beach in Lagos State. The WAGP will continue offshore, with proposed landfall spurs at Cotonou (Benin), Lome (Togo), Tema (Ghana), Takoradi (Ghana) and Effasu (Ghana). The initial capacity of the WAGP will be 200 Mmcf/d, with the capability to expand to 600 Mmcf/d as demand grows.

The $500-million WAGP will initially transport 120 Mmcf/d of gas to Ghana, Benin and Togo begining in June 2005. Gas deliveries are expected to increase to 150 Mmcf/d in 2007, to 210 MMcf/d in 7 years and be at 400 Mmcf/d when the pipeline is functioning at its capacity (approximately 15 years after construction). It is estimated that $600 million will be spent on the development of new and renovated power facilities in the four states to utilize the gas. It is also possible that the WAGP will be extended to markets in Cote d'Ivoire. Speculation has the WAGP eventually terminating in Senegal, but the current regional stability problems of several countries (Cote d'Ivoire, Liberia, Sierra Leone) that lie on the way to Senegal, will hinder any further extension of the WAGP.

Project Benefits
A study, commissioned by Chevron, estimates that 10,000 to 20,000 primary sector jobs will be created in the region by WAGP. New power supplies, fueled by gas from the project, will stimulate the growth of new industry. The industrial growth has the potential to spawn an additional 30,000-60,000 secondary jobs. In addition to the $1 billion in investment (WAGP and power facilities) already projected, the study sees approximately $800 million in new industrial investment occurring in the region.

The World Bank estimates that Benin, Togo and Ghana can save nearly $500 million in energy costs over a 20-year period as WAGP-supplied gas is substituted for more expensive fuels in power generation. Ghana estimates that it will save between 15,000-20,000 barrels per day of crude oil by taking gas from the WAGP to run its power plants. Chevron has signed a 20-year agreement to supply natural gas, via the WAGP, to a 220-MW power plant proposed in Tema, Ghana. Under terms of the contract, the plant will receive 40 Mmcf/d of natural gas.

Environmental Impact
The major positive environmental impact of WAGP will be the development and use of gas currently flared in Nigeria. Research by ecologists suggests that routine flaring of gas at Niger Delta facilities has stunted plant growth and reduced crop yields in the region. Cleaner-burning gas supplied by the WAGP will replace petroleum products used in the generation of electricity.

Several local environmental groups in Ghana, Nigeria, and Togo oppose the WAGP project. Friends of the Earth-Ghana argue that environmental impact assessments of the project were not given sufficient priority in feasibility studies. Nigerian environmentalists estimate that a total of 50,000 families in Nigeria, Ghana, Benin, and Togo could be displaced as a result of the WAGP project.