Deals signed for Equatorial Guinea ‘Gas Mega Hub’
Noble Energy, as operator of Alen gas project offshore Equatorial Guinea has signed definitive agreements with Marathon Oil and Equatorial Guinea government to develop the fields gas resources via through Alba Plant LLC’s LPG processing plant and EG LNG’s LNG production facility, both located in Punta Europa island.
Marathon Oil is the majority shareholder in both Alba Plant LLC and EG LNG. This agreement will see Sonagas GE, the National Gas Company of Equatorial Guinea stake increased from 25% to 30%.
Existing production and processing facilities are already in place at the Alen Platform and in Punta Europa. According to a statement by the Equatorial Guinea government, the Alen offshore platform will undergo minor modifications to export gas while primary condensate will continue to be produced and lifted offshore via the Aseng FPSO.
The Alen Unit joint venture will install and operate a 70-kilometre pipeline to transport gas from the Alen Platform to Punta Europa, where it will be processed and transported for sales on the global market.
The pipeline will be capable of transporting approximately 950 MMscfd of gas. First gas is expected in the first quarter of 2021.
“The Alen Unit gas monetization project will leverage the capacity of the world-class Punta Europa facilities. Modifications are already underway at Alba Plant in order to receive Alen Unit gas. No process modifications are expected at EG LNG in order to process Alen Unit gas,” the government said.
“This agreement is a significant step toward solidifying Punta Europa as a cornerstone component of the EG Gas Mega Hub for the potential development of local and regional natural gas,” said Mitch Little, Marathon Oil executive vice president, Operations.
“With tie-ins available and minor modifications under way at the Alba Plant, capital requirements are minimal. Importantly, the project leverages existing capacity of the world-class Alba Gas Plant and EG LNG facilities, and all parties benefit from exposure to global LNG prices.”
Gas Mega Hub
The project will provide an additional source of gas for the Punta Europa facilities and will transform the Alen platform into an Offshore Gas Hub for development of both Alen Unit gas, other Block O and I discoveries and potentially additional Gulf of Guinea gas fields, the government said.
The government said that the Alen Gas Offshore Hub will be the first hub in the Government’s vision of developing Equatorial Guinea as a Gas Mega Hub, comprising of additional offshore gas hubs, all feeding gas into the Punta Europa facilities.
“This is the kick off of our Gas Mega Hub and we will do more deals on other gas assets in the country which must be developed. Development of the Gas Mega Hub will ensure a thriving Equatorial Guinea gas industry into the future.
“It is my firm belief that it will create opportunities for development of our citizens in the Upstream and Downstream segments of the country’s oil and natural gas industry” said the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.
“Monetisation of Alen Unit gas could deliver around US$1.5-2 billion dollars in additional State revenues over the life of the project, including revenues from Alen Unit and respective Punta Europa plants. Local content is going to play an integral part in the implementation of the project when it comes to contracting and jobs for our citizens.
“I am happy this project will support the employment of Equatoguineans employed by the Punta Europa plants and Alen platform, which currently stands at approximately 1,400 employees in total,” the minister said.
Source: Offshore Energy Today