Equatorial Guinea, Burkina Faso ink LNG MoU
Equatorial Guinea’s Ministry of Mines and Hydrocarbons inked a deal with the government of Burkina Faso for the supply and construction of LNG infrastructure.
Under the three-year memorandum of understanding, the two governments would negotiate and sign an LNG sale and purchase agreement (SPA) and a terminal agreement (TUA), providing a basis for an LNG exchange.
The deal also will also see Equatorial Guinea explore and produce oil and gas in Burkina Faso, the ministry said.
Speaking of the MoU, Gabriel Mbaga Obiang Lima, Equatorial Guinea’s minister of mines and hydrocarbons, said it is a part of the country’s LNG 2 Africa initiative.
The MoU entails a commissioning of a technical study for the construction of regasification and LNG storage terminals following which both sides will exchange knowledge and data.
In addition to the studies, the two countries will look to build LNG regasification and storage facilities in Burkina Faso as well as transport infrastructure, enabling delivery via pipeline or LNG carriers.
Equatorial Guinea is exporting 3.4 mtpa of LNG currently, but the capacity will increase by additional 2.2 mtpa when the proposed Fortuna FLNG project comes online in 2020.
London-based Ophir Energy last week said it expects to make a final investment decision on its Fortuna FLNG project in Equatorial Guinea in the fourth quarter of this year.
Swiss trading company Gunvor has been nominated as the preferred LNG buyer for offtake from the project, taking the full contract capacity of the Gandria FLNG vessel of 2.2 million mt per annum, which will be purchased on a Brent-linked, FOB basis for a 10 year term.