As a mature producer, Equatorial Guinea is prioritizing near-field, infrastructure-led exploration to yield new discoveries and bring additional resources into production. Through its parent company Marathon Oil, liquefied natural gas (LNG) company EG LNG entered into a five-year sales agreement with multinational commodity company Glencore Energy for natural gas produced from the offshore Alba field. The sales agreement became effective January 1, 2024 and is poised to renew foreign investment in Equatorial Guinea while monetizing offshore gas reserves.
As a dedicated producer of LNG in West Africa, whose focus is on the continuous improvement and excellence in all operations, EG LNG will participate as a silver sponsor during this year’s African Energy Week (AEW): Invest in African Energy 2024 event – taking place in Cape Town from November 4-8. The event brings together global financiers and African governments, setting the stage for deals to be signed and developments to kick off.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
EG LNG’s silver sponsorship highlights the company’s commitment to advancing Africa’s energy landscape, with a specific emphasis on the role of natural gas. EG LNG has established itself as a significant contributor to Africa’s gas sector, where its endeavors in Equatorial Guinea have made the company a pioneer in sustainable energy practices. Since 2002, EG LNG has steered groundbreaking gas projects, such as the Punta Europa integrated gas development. This massive undertaking houses Equatorial Guinea’s largest petroleum facility, including an LNG processing plant and one of Africa’s largest methanol production facilities.
With over five trillion cubic feet of proven natural gas reserves and a strong infrastructure base, Equatorial Guinea has been making significant strides towards establishing itself as a regional gas processing hub. Under the country’s gas mega hub (GMH) initiative – which aims to position the country as a regional gas processing hub, monetizing stranded resources in regional markets - the Equatoguinean government has partnered with a strong slate of foreign energy firms to scale-up project developments and unlock untapped reserves across West Africa.
Last year, independent energy company Marathon Oil inked an agreement with the government of Equatorial Guinea to forge ahead with the development of the second two phases of the GMH. The first phase was achieved in February 2021 and involved the tie-back of the Alen field, offshore Equatorial Guinea. Gas from the Alen field is processed through an onshore liquefied petroleum gas plant and EG LNG’s processing facility.
Positioned as a sustainable energy solution, natural gas has taken on a pivotal role as a catalyst for diversified and industrialized growth in Equatorial Guinea. As global interest in African gas heightens, Equatorial Guinea’s strong regulatory foundation, commitment to mutually beneficial investment terms and wealth of opportunities are poised to unlock further development prospects for the country. Additionally, with local content, regional cooperation and technology development at its core, the country’s ambitions to become a regional energy hub are set to drive the next wave of sustainable growth in West Africa.
“EG LNG’s operations in Equatorial Guinea not only contribute to the country’s energy growth but also align with the principles of sustainability by promoting responsible resource development and environmental stewardship. Equatorial Guinea is doubling down on gas – a key focal point of the global energy transition and investor interest. The country is well on its way to becoming a global oil and gas hub,” states African Energy Chamber Executive Chairman NJ Ayuk.
Distributed by APO Group on behalf of African Energy Chamber.
