Africa/Middle East: West Africa

West Africa Gas Workshop

Dates: February 14-16, 2012
Location: Cotonou, Benin

With support from the United States Agency for International Development (USAID), NARUC held a workshop focused on natural gas for countries within the West Africa Regional Partnership. As requested by the West African Gas Pipeline Authority (WAGPA), the workshop addressed open access, pipeline safety, accounting, pricing, dispute resolution, and wholesale gas markets. The event was well received and attended by 15 regulators from the countries connected to the pipeline.

WAGPA has demonstrated itself to be a highly capable regulator that works very hard to implement market-based regulation and adopt the best practices taught at the workshops put on by NARUC. A key issue up for discussion during the activity was how to price the gas coming out of Nigeria. Pegging prices to Henry Hub – a benchmark location in the U.S. used around the world -- would make it too expensive for African buyers, and not necessarily reflect the true value. WAGPA seemed very interested in adopting the recommendation of the consultant that led the gas workshop in Benin: creating a basket of alternative fuels that generators could use and peg it to the basket average, a method often used in the European Union. If WAGPA does implement this pricing model, this would reflect international best practices and further illustrate WAGPA’s commitment to improving the gas market in West Africa through transparent, independent regulation.





At A Glance

Project Dates: 2011-Present

Primary Partner: ECOWAS Regional Electricity Regulatory Authority

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