Equatorial Guinea Concludes Offshore Natural Gas Deal

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  • Equatorial Guinea Ministry of Mines and Hydrocarbons has executed the definitive agreements with the Alen Unit and respective Punta Europa Plant owners to monetise gas from the Alen Unit, located in Blocks O and I offshore Equatorial Guinea.
  • Existing production and processing facilities are already in place at the Alen Platform and in Punta Europa.

The definitive agreements commit for tolling Alen Unit gas through Alba Plant LLC’s liquefied petroleum gas (LPG) processing plant and Equatorial Guinea LNG’s liquefied natural gas (LNG) production facility, both located in Punta Europa.

Marathon Oil is the majority shareholder in both Alba Plant LLC and EG LNG. This agreement will see Sonagas GE, the National Gas Company of Equatorial Guinea stake increased from 25% to 30%.

The Alen offshore platform will undergo minor modifications to export gas while primary condensate will continue to be produced and lifted offshore via the Aseng FPSO.

The Alen Unit joint venture will install and operate a 70 kilometer pipeline to transport gas from the Alen Platform to Punta Europa, where it will be processed and transported for sales on the global market.

The pipeline will be capable of transporting approximately 950 MMscfd of gas.  First production of gas is expected in 1Q 2021.

The Alen Unit gas monetisation project will leverage the capacity of the world class Punta Europa facilities. Modifications are already underway at Alba Plant in order to receive Alen Unit gas. No process modifications are expected at Equatorial Guinea LNG in order to process Alen Unit gas.

The project will provide an additional source of gas for the Punta Europa facilities and will transform the Alen platform into an offshore gas hub for development of both Alen Unit gas, other Block O and I discoveries and potentially additional Gulf of Guinea gas fields.

The Alen Gas offshore hub will be the first hub in the government’s vision of developing Equatorial Guinea as a gas mega hub, comprising of additional offshore gas hubs, all feeding gas into the Punta Europa facilities.

“This is the kick off of our gas mega hub and we will do more deals on other gas assets in the country that must be developed,” said the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.

Lima added: “Development of the gas mega hub will ensure a thriving Equatorial Guinea gas industry into the future. It is my firm believe that it will create opportunities for development of our citizens in the upstream and downstream segments of the country’s oil and natural gas industry.”

Author: Babalwa Bungane

This article was originally published on ESI Africa and is republished with permission with minor editorial changes.


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