Equatorial Guinea Enters Liquefied Natural Gas (LNG) Market
|President Teodoro Obiang of Equatorial Guinea|
|Signs MoU with Burkina Faso to explore and produce oil and gas
By Idris Adesina
|MALABO, Equatorial Guinea: The Ministry of Mines and Hydrocarbons representing the Government of Equatorial Guinea, has signed a memorandum of understanding with the Government of Burkina Faso to supply the West African country with LNG and build critical infrastructure to import, store and transport gas.
The initial three-year agreement will see both sides negotiate and sign an LNG sales and purchase agreement (SPA) and a terminal use agreement (TUA) that will be the basis for their first LNG exchange. The MoU also calls for Equatorial Guinea to explore and produce oil and gas in Burkina Faso.
“We are very pleased to strike this agreement and be given the opportunity to supply our African brothers in Burkina Faso with crucial gas resources,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea. “This collaboration with Burkina Faso, part of our LNG 2 Africa initiative, highlights the important responsibility of African countries to cooperate in the energy sector and build the necessary infrastructure to strengthen our economies.”
As part of the agreement, the two African countries will commission a technical study for the construction of re-gasification and LNG storage terminals and will exchange knowledge and data. They will also work to work on transport infrastructure, either by pipeline or LNG carrier.
Equatorial Guinea is one of Africa’s biggest LNG producers, exporting 3.4 million tonnes per annum worldwide. It is committed to significantly expanding its export capacity through the 2.2 million tonnes per annum Fortuna FLNG project which is on track to reach final investment decision by the end of the year. When it goes online in 2020, Fortuna will be Africa’s first deepwater FLNG project.
In May, Equatorial Guinea entered into a binding agreement with the OneLNG joint venture to explore the liquefaction and commercialization of natural gas in offshore blocks O and I. Bringing online new LNG volumes will enable Equatorial Guinea to sell gas to higher priced markets in Africa and beyond while retaining a share in profits for onward marketing.