As one of Africa’s biggest liquefied natural gas (LNG) producers, exporting 3.4 million tonnes of LNG to destinations worldwide annually, Equatorial Guinea has signed a memorandum of understanding (MoU) to supply Burkina Faso with LNG.
“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,” Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea said.
The agreement which will run for an initial three-year period is part of Equatorial Guinea’s LNG 2 Africa initiative which highlights the vital responsibility of African countries to cooperate in the energy sector and build the necessary infrastructure to strengthen their economies.
It compels both sides to negotiate and sign an LNG sales and purchase agreement (SPA) and a terminal use agreement (TUA) which will be the basis for their first LNG exchange; and also calls for Equatorial Guinea to explore and produce oil and gas in Burkina Faso, helping the West African nation to build critical infrastructure to import, store and transport gas.
As part of the agreement, Equatorial Guinea and Burkina Faso will commission a technical study for the construction of regasification and LNG storage terminals as well as exchange knowledge and data.
The two countries will also build regasification and storage terminals in Burkina Faso and transportation infrastructure, either by pipeline or LNG carrier under the MoU signed between both countries’ governments.
Equatorial Guinea is committed to expanding its export capacity through the 2.2 million tonnes per annum Fortuna FLNG project which will be Africa’s first deepwater independent floating liquefied natural gas (FLNG) project with the first gas forecast for 2020.