Gasol plc, the West African energy development company, announced that it has signed a Joint Venture Agreement with Societe BenGaz S.A., following the agreement in principle between the two companies announced on 3 September, 2012.
Under the terms of the Agreement, Gasol and Bengaz will form a JV company branded Cogaz S.A, which will market gas in Benin, Togo and other countries in the West African region. All natural gas to be sold by Cogaz will be purchased from Gasol or one of its affiliates.
Furthermore Gasol and Bengaz have also signed an asset management agreement, under the terms of which Gasol will provide management assistance to BenGaz in respect of its 2% stake in the 690km offshore West African Gas Pipeline established to transport natural gas from Nigeria to consumers in Benin, Togo and Ghana.
Gasol is working to station a Floating Storage and Regasification Unit in Cotonou harbor to take on and store gas supplies for transmission through local infrastructure and the WAGP to Cogaz’s customers, which will include power plants and other major industrial consumers in the region.
Cogaz has already signed a Memorandum of Understanding for gas supply with Communaute Electrique du Benin, the electricity authority for Benin and Togo.
Gasol’s Chief Operating Officer, Alan Buxton , said: “We are pleased that we have been able to make progress with our plans so quickly. The Board believes that in Bengaz Gasol has found a complementary partner who, like us, is motivated to bring gas supply to West Africa, with a view to diversifying away from more expensive liquid fuels and promoting the growth of industry in the region.”
[mappress] LNG World News Staff, December 10, 2012; Image: Gasol