Gasol signs gas supply agreement

Gasol said today that its subsidiary, Gasol LNG Import Ltd has signed a conditional long-term gas supply agreement with, the Volta River Authority, the major power generation company in Ghana. The daily contract quantity under the agreement is 100 million ft³/d.

Today's announcement means that Gasol LNG Import now has sufficient gas offtake agreements in place to progress with the development of its proposed LNG import and regasification facilities to be located in Cotonou harbour, Bénin.

The agreement succeeds the signing of a the joint venture agreement revealed last month, between Gasol's affiliate African Power Generation Ltd (Afgen) and Ghana National Gas Company Ltd (GNGC). Under the terms of the joint venture, Afgen and GNGC have agreed to cooperate on the marketing of regasified LNG from Bénin and the development of the use of LNG in Ghana.

Gasol has already concluded a gas supply agreement with the Communauté Electrique du Bénin, the electricity authority for Bénin and Togo, with a daily contract quantity of 60 million ft³/d.

Chief Operating Officer of Gasol plc, Alan Buxton said: "Ghana is a major market for gas supply and we are absolutely delighted to have executed an agreement with the Volta River Authority for the supply of 100 million ft³/d. When the Benin project is operational, the supply of natural gas to the Volta River Authority's power plants will displace the use of more expensive and environmentally unfriendly imported light crude oil."

Edited from various sources by Ted Monroe

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