Page 14 - DMEA Week 38

DMEA REFINING DMEA

Equatorial Guinea aims to move

ahead with modular refinery

EQUATORIAL EQUATORIAL Guinea’s government is mov- a heads of agreement (HoA) on the project by the
GUINEA ing ahead with plans to build the country’s first end of the year.
oil-processing plant, according to Gabriel Mbaga The minister further stated that he expected
Capacity will eventually Obiang Lima, the head of the Ministry of Mining the modular refinery to benefit the Equatoguin-
reach 10,000 bpd. and Hydrocarbons (MMH). ean economy. The plant will reduce the country’s
Obiang Lima presented the refinery project dependence on imported fuel, as it will produce
to investors earlier this week in Malabo. At the gasoline, diesel, kerosene, jet fuel and naphtha
presentation, he noted that MMH’s contractor, for sale on the domestic market, he stated.
Houston-based VFuels, had recently completed
a feasibility study of the initiative. The ministry Background
and its partner, Marathon Oil (US), appointed According to previous reports, the refinery is
Vfuels to conduct the study earlier this year. slated to be built on the site of a methanol plant
According to the minister, the feasibility owned by Atlantic Methanol Production Co.
study envisions the construction of a modular Last December, MMH issued orders for the dis-
refinery capable of processing gas condensate mantling of the facility in preparation for its con-
from the Alba and Alen fields in two phases. The version into a modular refinery. The following
first phase will involve the installation of a crude month, it struck an agreement with Marathon
distillation unit (CDU) and auxiliary equipment on a study of the project and a separate study of
over a period of 20-24 months, he said, and the methanol-based gasoline and its derivatives.
second will involve the installation of a reform- Marathon owns a 45% stake in Atlantic
ing unit for gasoline production over a period of Methanol Production Co. The remaining equity
30-36 months. in the plant is split between Noble Energy (US),
Initially, he added, the refinery will be able with 45%, and Equatorial Guinea’s state-owned
to handle 5,000 barrels per day of condensate. natural gas company Sociedad Nacional de Gas
Throughput capacity will then rise to 10,000 bpd de GE (Sonagas), with 10%.
in the second stage of operations, he said. Obiang Lima noted earlier this year that the
Obiang Lima put the cost of building the refinery project fell within the framework of the
plant at $147mn for the first phase and more Equatoguinean government’s Year of Investment
than $200mn for the second phase. He also 2020 initiative. The programme also includes
noted, though, that the partners had not yet plans to seek funding for methanol-related pro-
finalised plans for financing either variant of the jects and the construction of storage facilities on
project, he noted. the country’s continental territory, he said.
The ministry has only taken a 20% stake in When finished, the refinery will be part of the
the scheme, he added, and will leave the remain- Punta Europa oil and gas complex near Malabo,
ing 80% in the hands of private-sector investors. the capital of Equatorial Guinea. The complex
He was speaking several days after MMH said it also includes a gas liquefaction plant that turns
was preparing to start talks with potential part- out LNG, gas-processing facilities and a gas-fired
ners within the next few weeks and hoped to sign thermal power plant (TPP). ™

P14 www. NEWSBASE .com Week 38 24•September•2020