press release

Chevron Press Release - Chevron Signs Letter Of Intent For Sale Of Natural Gas To Ghana

SAN FRANCISCO, Feb. 18, 1997 -- Chevron announced today that it has signed a Letter of Intent (LOI) to supply Nigerian natural gas to Ghana via Benin and Togo. The LOI was signed by Chevron and the Ghana National Petroleum Corporation (GNPC). The LOI is a step towards demonstrating the commercial viability of the proposed West African Gas Pipeline Project (WAGP), the first major regional project utilizing Nigeria's associated natural gas.

With the signing of the Letter of Intent, Chevron and GNPC will submit a joint proposal to supply natural gas to the Volta River Authority's Takoradi Thermal Power Plant project.

"The West African Gas Pipeline Project offers both economic and environmental benefits. The LOI is a significant step towards fostering a mutually beneficial partnership that we anticipate will make the West African Gas Pipeline a reality," said Richard Matzke, president of Chevron Overseas Petroleum Inc. Successful implementation of WAGP will lead to a regional natural gas grid that can supply clean, lower cost, and plentiful energy to fuel regional economic development.

Regional economic cooperation is one of the goals of the Economic Community of West African States (ECOWAS), of which all four governments are members. The project will greatly reduce the gas flaring from the Nigeria National Petroleum Corporation/Chevron Joint Venture's Escravos area and supply it to consumers in West Africa.

Updated: February 1997