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23 April 2014

Gasol's partner formalises Ghana National Gas agreement.

Gasol (LON:GAS) partner African Power Generation (AfGen) has entered into a joint venture (JV) deal with Ghana National Gas.

The JV will address the current gas deficit and supply risk in Ghana by setting up regasification facilities to supply regasified LNG to power plants and other gas users in Ghana, independent of the West African Gas Pipeline.
The JV will eventually be responsible for the sale and marketing in Ghana of regasified LNG from Gasol's LNG import project in Benin via the West African Gas Pipeline. Initial gas volumes to be sold into Ghana are expected to be a minimum of 100mln standard cubic feet per day for a minimum period of five years.

Gas from the JV will complement Ghanaian field gas as well as contribute towards achieving security of the gas supply needed to address Ghana's current gas deficit and diversify gas supply risk, the statement from Gasol said.
The agreement formalises a memorandum of understanding signed between Ghana Gas and AfGen last year.
“The arrangements signal progress on two fronts, both in delivering a dedicated solution for Ghana and prior to the implementation of that solution, the sale and marketing of regasified LNG in Ghana from our planned Benin LNG Import project," observed Alan Buxton, chief operating officer at Gasol.

Gasol has an option to purchase the entire issued share capital of AfGen from African Gas Development Corporation Limited until 24 August 2014.



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