Equatorial Guinea seeking LNG buyers post 2020

As its contract with Shell runs to its end, Equatorial Guinea is looking to find buyers for its LNG supplies from 2020 onwards. 

The country is in talks with independent and state-owned companies as well as traders to close down deals with terms varying from 3 to 5 years.

Speaking to Reuters, Equatorial Guinea’s minister for mines and hydrocarbons, Gabriel Obiang Lima, said the country also intends to lift royalties from future LNG exports from the current 12.5 percent to close to 50 percent.

He noted the government invited potential buyers to make them aware of the possibilities, adding that talks are being held with Total of France, Shell, China National Offshore Oil Corporation (CNOOC), Lukoil of Russia, Swiss trading company Vitol and a joint venture between Lukoil and NewAge.

The Marathon Oil-operated EG LNG facility, currently being supplied from the Alba field is expected to cut down on production as sources from the field run out.

Marathon Oil has already agreed with the government of Equatorial Guinea to process third-party resources at the facility in order to expand its lifespan.

In its statement on Thursday, Houston-based Noble Energy said it has reached an agreement with the Equatorial Guinea government to process the resources from the Alen field at the EG LNG plant.

Existing production and processing facilities in place at the Alen platform and in Punta Europa require only minor modifications to produce and process the Alen gas.

Noble Energy estimates an incremental 600 billion cubic feet of gross natural gas equivalent resources from the Alen field are recoverable as a result of the project.

LNG World News Staff