Equatorial Guinea Signs Deal with Major Energy Companies for Monetization of Gas from Country’s Alen Unit

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Equatorial Guinea’s Ministry of Mines and Hydrocarbons, on behalf of the country’s Government, has signed Definitive Agreements to monetize gas from the Alen Unit, an area located in Blocks O and I offshore Equatorial Guinea (EG) and operated by Noble Energy EG Ltd.

The definitive agreements will ensure the tolling of Alen Unit gas through energy company, Alba Plant LLC’s liquefied petroleum gas (LPG) processing plant and EG LNG’s liquefied natural gas (LNG) production facility, both located in Punta Europa.

Following the agreement, American petroleum and natural gas exploration and production company, Marathon Oil is the majority shareholder in both Alba Plant LLC and EG LNG. The deal will see Sonagas GE, the National Gas Company of Equatorial Guinea’s stake increased from 25% to 30%.

Under the agreement, the Alen offshore platform will undergo minor modifications to export gas while primary condensate will continue to be produced and lifted offshore via a ship known as 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. First gas is expected in Quarter 1 of 2021.

Modifications are already underway at Alba Plant in order to receive Alen Unit gas. No process modifications are expected at EG LNG in order to process Alen Unit gas.

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 kickoff of our Gas Mega Hub and we will do more deals on other gas assets in the country that must be developed. 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” said the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.

“Monetization of Alen Unit gas could deliver around $1.5 to 2 billion in additional State revenues over the life of the project, including revenues from Alen Unit and respective Punta Europa plants. Local content is going to play an integral part in the implementation of the project when it comes to contracting and jobs for our citizens,” the Minister concluded.

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