03 September 2012

Gasol agrees joint venture with BENGAZ of Benin

03 September 2012 - Gasol (AIM: GAS), the West African energy development company, today announces that it has reached an agreement in principle to form a joint venture company with Societe BenGaz S.A. ('BenGaz'). 

In Benin, Gasol and BenGaz will form a joint venture company to develop gas distribution infrastructure and a natural gas supply business in the country. BenGaz will use its best endeavours to assign to the joint venture company all of its existing rights to supply natural gas in its territories. 

Under a separate agreement to be concluded with Gasol, all natural gas to be sold by the joint venture company will be purchased from Gasol or one of its affiliates. The joint venture company will market the gas to power plants and other major industrial consumers in the country. 

Additionally, Gasol and BenGaz will enter into a separate agreement under which Gasol will provide management assistance in respect of BenGaz's 2% stake in the West African Gas Pipeline ('WAGP'), a 690km offshore pipeline established to transport natural gas from Nigeria to consumers in Benin, Togo and Ghana. 

Commenting on the transactions, Gasol's Chief Operating Officer, Alan Buxton, said: "Today's agreements with Bengaz are another step in the delivery of our gas to power strategy in West Africa. We continue to make progress across the supply chain to establish reliable gas supplies that can meet the growing energy demands of these emerging markets, thereby helping them to meet their wider economic development goals." 

Source: Gasol