Gasol secures Benin supply agreement

Deal: Gasol has signed a gas supply agreement with Volta River Authority

London-listed Gasol has secured enough gas offtake agreements to progress the development of its proposed liquefied natural gas import and regasification terminals in Benin.

The revelation came as the company revealed it had signed a conditional long term gas supply agreement with Ghana power generation company, the Volta River Authority.

Gasol said it the agreement covered a daily contract quantity of 100 million cubic feet per day.

The deal follows on from a joint venture agreement signed last month between Gasol's affiliate African Power Generation and Ghana National Gas Company where the pair agreed to cooperate on the marketing of regasified LNG from Benin and the development of an LNG solution for Ghana.

"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 MMcfd,” Gasol chief operating officer Alan Buxton said.

“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."

The deal will allow it to move forward with its proposed LNG import and regasification facilities in Benin’s Cotonou harbour, having already signed a gas supply agreement with the Communaute  Electrique du Benin, the electricity authority for Benin and Togo, with a daily contract quantity of 60 MMcfd.

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