Equatorial Guinea is in talks with Cameroon and Nigeria to facilitate additional cross-border linkages on its gas monetisation project.
Equatorial Guinea’s Ministry of Mines and Hydrocarbons stated that the project represented a foreign direct investment of approximately $475m, from which local and international companies benefitted.
The minister, Gabriel Lima, added, “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 investment in Punta Europa, including the construction of a second Liquefied Natural Gas train and implementation of other new projects.
“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.
“It will drive the energy sector and, by closing deals with Cameroon and Nigeria, we intend to incentivise the industry, drive economic growth and generate revenue for regional governments to help finance education, health and infrastructure. It is possible with natural gas and we are committed to doing it with new technologies and investments.”
The Alen gas monetisation backfill project is the first phase of the strategic vision to transform Equatorial Guinea into a mega gas hub to provide for the monetisation of 580 billion cubic feet of natural gas over six years via a 68km pipeline.
With this, Equatorial Guinea has emerged as a regional leader in gas monetisation in West Africa. It is home to two gas-processing hubs: the Marathon-operated Alba field and Chevron-operated Alen unit.