Equatorial Guinea, Burkina Faso pen LNG MoU
Equatorial Guinea’s ministry of hydrocarbons has signed a memorandum of understanding with the Government of Burkina Faso to supply the West African country with LNG and build critical infrastructure to import, store and transport gas.
According to a statement by E. Guinea’s hydrocarbons’ ministry, the initial three-year agreement compels both sides to negotiate and sign an LNG sales and purchase agreement (SPA) and a terminal use agreement (TUA) that will be the basis for their first LNG exchange.
The MoU also calls for Equatorial Guinea to explore and produce oil and gas in Burkina Faso.
“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,” said Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea. “This collaboration with Burkina Faso, part of our LNG 2 Africa initiative, highlights the important responsibility of African countries to cooperate in the energy sector and build the necessary infrastructure to strengthen our economies.”
As part of the agreement, both sides will commission a technical study for the construction of regasification and LNG storage terminals and will exchange knowledge and data. They will also work to build regasification and storage terminals in Burkina Faso and transport infrastructure, either by pipeline or LNG carrier, the ministry said.
Equatorial Guinea exports around 3.4 million tonnes per year of LNG to destinations worldwide. The country is working to expand its export capacity through the 2.2 million tonnes per annum Fortuna FLNG project, which is on track to reach final investment decision by the end of the year. The project is expected to come online in 2020.
In May, Equatorial Guinea entered into a binding agreement with the OneLNG joint venture to explore the liquefaction and commercialization of natural gas in offshore blocks O and I. Bringing online new LNG volumes will enable Equatorial Guinea to sell gas to higher priced markets in Africa and beyond while retaining a share in profits for onward marketing, the ministry said.
Offshore Energy Today Staff