The future of West African gas pipeline project on gas market : development in the West African sub region
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- Master Thesis 
Over the years, there has been global interest in the energy sector and its mechanism especially the huge and irreversible capital outlay ploughed into this industry. This interest has been strengthened by pivotal roles played by most energy (oil) producing countries of the world such as Norway, Russia, Saudi Arabia, Venezuela, Iran, Nigeria etc in world economics as well as the advancement in the study of Petroleum Economics. This thesis examines the future of the West African Gas Pipeline Project on Gas Market development in the West African Sub Region exploring issues of pricing, third party access, finance and financing risk. I study the characteristics of gas market as a natural monopoly and proceeded to an overview of the nature of the gas industry in some European countries. Subsequently, I look at the theoretical approach to increasing gas supplies with a view to study how there could be varying incentive to invest in new gas capacity and new gas projects. Bearing in mind the role of finance in all this, the financing risk issues are discussed at great length while specific risks in gas projects are brought to light. The West African Gas Pipeline is also given prominent attention exploring all the issues that could arise during the course and after project completion. I conclude that if the pipeline company has access to supplies from more than one source, it would at least in the simplest cases buy only the cheapest source and the cost of gas from the next cheapest source would effectively put a limit on how much the cheapest supplier could get for his gas.