West African energy development company Gasol has signed a strategic alliance with Socar Trading S.A (STSA) in relation to its proposed Liquefied Natural Gas Import Project in Benin.
STSA is the international marketing and development arm of SOCAR, the State Oil Company of the Azerbaijan Republic.
Under the terms of the agreement, STSA will supply all Liquefied Natural Gas required for the Liquefied Natural Gas Import Project in Benin and assist Gasol with the provision of a floating gas storage and regasification vessel in the harbour at Cotonou, Benin.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The Project involves the regasification of Liquefied Natural Gas and the supply of that gas to power and industrial customers in Benin, Togo and Ghana.
The strategic alliance is a key development for Gasol, as it ensures the supply of LNG and the storage and regasification vessel on competitive terms, important components in putting the Project together.
It also allows STSA to leverage its LNG capability to support Gasol's project and to build its presence in West Africa.
Alan Buxton, Chief Operating Officer at Gasol, said: "Our alliance with STSA represents a major step towards our goal of bringing gas to Benin, Togo and Ghana, which remain significantly gas constrained in their power plants and industries.
"In line with the board's new strategy, the strategic alliance with STSA provides Gasol with access to LNG and a storage and regasification vessel, but just as importantly, STSA's experience in the development of such projects."
Hayal Ahmadzada, Head of Oil Trading at STSA, said: "We are delighted to be working with Gasol to help them unlock the value of their Benin LNG Import Project. Creating this strategic alliance allows STSA the opportunity to supply LNG to a market where we see significant growth over the short to medium term and positions us well in the region to capitalize on that growth."
MF
-
The industry at the heart of global technologyThe semiconductor industry powers key trends such as artificial intelligence, says Rupert Hargreaves
-
What are shareholder voting rights and why do they matter?If you hold shares in a company, the chances are they’ll come with voting rights. But how do you exercise your right to vote? And is your fund manager taking it seriously?
