Nigeria Seeks Ghana’s Support for the Atlantic Gas Pipeline Project Amid Gas Debt Talk

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Nigeria Seeks Ghana’s Support for the Atlantic Gas Pipeline Project Amid Gas Debt Talk

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Flags of Nigeria & Ghana (©Shutterstock/esfera)
Flags of Nigeria & Ghana (©Shutterstock/esfera)

Nigeria is seeking Ghana’s support for the proposed African Atlantic Gas Pipeline Project (also known as the Nigeria-Morocco gas pipeline), which aims to improve regional ties and bolster energy security.

The discussions between the two countries took place on the sidelines of a ministerial meeting of the West African Gas Pipeline Committee in Accra, Ghana. Officials from Nigeria and Ghana met in Accra to address an outstanding gas debt of $75 million owed by Ghana for supplies delivered through the West African Gas Pipeline

Nigeria's Minister of State for Petroleum Resources, Ekpo Ekperipe, confirmed he discussed the debt with Ghanaian President John Dramani Mahama. Ekperipe stressed the necessity for relevant Ghanaian agencies to facilitate the payment owed to Nigeria under the West African Gas Pipeline agreement.

The West African Gas Pipeline is a 678-kilometer system transporting natural gas from Nigeria's Niger Delta to Benin, Togo and Ghana. It is operated by the West African Gas Pipeline Company Limited, a consortium involving entities including Chevron, the Nigerian National Petroleum Corporation, and national gas companies from the participating countries.

During the meeting, the Nigerian minister also sought Ghana's backing for the proposed African Atlantic Gas Pipeline Project, a broader initiative aimed at enhancing regional energy security and economic ties.

Last May, African leaders and energy officials reaffirmed their commitment to support the $25 billion initiative that would traverse at least 13 African countries, and potentially extend to Europe. 

Ekperipe affirmed Nigeria's commitment to ongoing collaboration in the gas sector and its readiness to resolve all pending matters related to the WAGP gas supply.

President Mahama reportedly acknowledged the minister's concerns and reiterated Ghana's dedication to meeting its financial obligations to the pipeline project and fostering regional stability.

In February, the Ghanaian government had indicated plans to negotiate a $37.5 million payment to Nigeria's N-Gas Limited towards the outstanding debt, which is linked to gas supply for Ghana's power plants. 

However, the managing director of N-Gas has neither confirmed nor denied whether that payment was made.