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West African Gas Pipeline should deliver first gas to Ghana in the first quarter of 2010

The pipeline connecting Nigeria's natural gas supplies to Ghana is suffering delays. In April 2009, WAPCo, West African Gas Pipeline Company, supplied gas to the Volta River Authority (VRA) power plant at Aboadze under an interim sales arrangement; however, since May, the plant has ceased to receive gas due to the destruction of several hundred kilometres of pipelines in the Niger Delta region. The compressor station in Lagos, which would enable to transport higher volumes of gas from Nigeria to Ghana and to Benin, is still under construction; in addition, other facilities, including the regulating and metering stations that would enable gas to be received from offshore in Tema, Lome and Cotonou are expected to be completed in the first quarter of 2010. According to the 20-year agreement signed between Nigeria, Benin, Togo and Ghana in 2000, gas deliveries were expected to increase to 2.2 bcm in 2015 and be at 4.1 bcm when the pipeline is functioning at its full capacity. Chevron and Shell together own over 50 % of WAPCo. In Ghana, Volta River Authority (VRA) power utility (Ghana) will be able to increase capacity at its Takoradi thermal plant to 660 MW from 550 MW - and switching from liquid fuel to gas to cut costs - in the first quarter of 2010, when the pipeline's compressor station is completed and the pipeline starts commercial operations.