MALABO, Equatorial Guinea, February 26, 2021/ -- The
Alen gas monetization backfill project
represents the first phase of
Equatorial Guinea’s Gas Mega Hub masterplan; Launched by the Ministry of
Mines and Hydrocarbons in May 2018, the Gas Mega Hub seeks to aggregate
gas from upstream producers to deliver it to onshore industry;
Equatorial Guinea is currently in discussions with Cameroon and Nigeria
to facilitate additional cross-border linkages. The Alen
gas monetization backfill project represents the first phase of the
strategic vision to transform Equatorial Guinea into a Gas Mega Hub
through the development of several offshore gas hubs and monetization of
neighboring gas reserves.
Aggregating gas from upstream
producers and delivering it to onshore industry, the Mega Hub aims to
create new efficiencies and safeguard the steady production of liquefied
natural gas (LNG) in Equatorial Guinea, as well as reduce dependency on
single upstream producers.
The Alen backfill project provides
for the monetization of 580 billion cubic feet of natural gas over six
years via a 68-km pipeline, which connects the Chevron-operated Alen
unit with existing gas-processing facilities in Punta Europa for the
production of LNG, liquefied petroleum gas and gas condensate.
Located
approximately 32-km off the coast of Bioko Island, the Alen field is a
liquid-rich gas and condensate field that has functioned as a condensate
production and natural gas recycling project since entering operation
in 2013, as well as produced and reinjected natural gas into the
reservoir to support enhanced liquids recovery.
“This investment
is crucial to the economy of Equatorial Guinea and the region. The Gas
Mega Hub is an Investment that has created jobs during difficult
economic times and will create the jobs of the future.” Stated H.E.
Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons.
“It
will drive the energy sector and by closing deals with Cameroon and
Nigeria, we intend to incentivize the industry, drive economic growth,
and generate revenues for regionals governments to help finance
education, hospitals and infrastructure. It is possible with natural gas
and we are committed to doing it with new technologies and
investments” Concluded Gabriel Obiang Lima.
The project
represents a direct foreign investment of approximately $475 million,
from which both local and international companies have benefitted from
the provision of related services.
For its part, Equatorial
Guinea has emerged as a regional leader in gas monetization in West
Africa and is currently home to two gas-processing hubs: the
Marathon-operated Alba field and Chevron-operated Alen unit. The
creation of an offshore gas industry has initiated new opportunities for
tie-ins to unlock additional gas resources that would otherwise be left
stranded.
The development also serves to facilitate cross-border
linkages with gas projects in neighboring countries and opens the door
for the establishment of new hubs to service the region. Equatorial
Guinea’s Ministry of Mines and Hydrocarbons is in advanced discussions
with Cameroon regarding a monetization framework for resources located
in the Yoyo-Yolanda cross-border field, which could represent the second
phase of the project.
In addition, a State-to-State agreement
has been signed between Equatorial Guinea and Nigeria for the potential
to transport Nigerian gas to Bioko Island. This, on top of talks with
Cameroon, could potentially trigger additional investments in Punta
Europa, including the construction of a second LNG train and
implementation of other new projects.
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