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Reuters

29

OPEC bulletin 8–9/17

increase shipments to key export markets fromEquatorial

Guinea. The terminal will consist of 22 storage tanks and

will have a total capacity of 1.2m cu m. Other partners in

the project are Taleveras Exploration, Gunvor Group and

the Strategic Fuel Fund Association.

Gas

On the gas side, most of Equatorial Guinea’s natural gas

production is exported in the form of liquefied natural

gas (LNG). This is processed through the EG LNG termi-

nal on Bioko island, where the $1.4 billion Train 1 was

completed in May 2007. The plant’s

Train 1

has a capac-

ity of 3.4m metric tonnes/year. It is run by EG LNC Co, a

consortium of

Marathon Oil

(60 per cent);

Sonagas

, the

National Gas Company of Equatorial Guinea (25 per cent);

Mitsui

& Co, Ltd (8.5 per cent); and

Marubeni

Corporation

(6.5 per cent).

The gas for the plant comes from the Marathon-

operated Alba field. During the early part of the last

decade the Marathon operated Alba field underwent

a significant expansion programme and now produces

a large amount of gas, which also feeds the Atlantic

Methanol Producing Company (AMPCO). The country’s

main LNG export markets are in Asia, such as Japan

and South Korea, but it has also seen exports to China,

India, the US and Europe.

The country also has plans to develop the Fortuna

floating liquefied natural gas (FLNG) export project.

The UK’s Ophir Energy is behind the development of

the project, while the buyer of the LNG and the finan-

cial structure underpinning the scheme should

be announced soon. Fortuna FLNG is

expected to be Africa’s first deepwater

floating liquefaction facility, with

production capacity of 2.2m t/

yr and an estimated start-up

in 2020.

The country is also

looking at other possibil-

ities for FLNG projects. In

May 2017, the Ministry of

Mines and Hydrocarbons

entered into a ‘binding

agreement’ with OneLNG

SA to explore the liquefac-

tion and commercialization of

natural gas in offshore Blocks

O and I in the country. OneLNG is

a joint venture between Golar LNG and Schlumberger to

rapidly develop gas reserves into LNG. The target date for

reaching an agreement is the end of 2017.

Looking ahead

Oil and gas exports have been central to Equatorial

Guinea’s growth and are expected to continue to drive the

economy in the years ahead. It is evident that the govern-

ment is committed to reversing declining oil production,

and to further expanding its LNG facilities.

The government also recognizes it has a variety of

other resources that can benefit the local population

and the economy, including its tropical climate, fertile

soils, rich expanses of water and deepwater ports. Thus,

the government is seeking to diversify the economy by

encouraging agriculture and financial ser-

vices. The once-significant eco-

nomic mainstays of the colo-

nial era — cocoa, coffee,

and timber — are also

receiving atten-

tion, although

they are small

in compari-

son to the

coun t r y ’ s

e n e r g y

sector.

The Torre de la

Libertad monument

in Bata, Equatorial Guinea

was inaugurated on October 12, 2011,

in commemoration of the country’s

independence of the nation.

A general view of the

world’s first LNG pipe rack

suspension bridge in Punta

Europa, Equatorial Guinea.