Page 4 - AfrOil Week 41 2021

AfrOil COMMENTARY AfrOil

EG LNG in Punta Europa (Photo: Marathon Oil)
Malabo’s big dreams

for Mega Gas Hub

Equatorial Guinea could become a major hub for regional gas trade – if its plans come together

THE government of Equatorial Guinea recently gas yields began sinking about three years ago
began talking up its plans for the creation of a and are likely to continue trending downwards.
WHAT: Mega Gas Hub (MGH) at Punta Europa, say- But ambition isn’t everything. Equatorial
Equatoguinean author- ing that it was ready to lead the way toward the Guinea’s MGH plan has two phases, and it
ities are talking up the establishment of new facilities serving local remains to be seen whether the first phase will
MGH project, which is natural gas fields, as well as fields controlled by succeed or not.
designed to support gas neighbouring states.
production at local fields In late September, for example, Equatogu- Mega Gas Hub (MGH)
and in neighboring coun- inean Minister of Mines and Hydrocarbons Officials in Malabo presented plans for MGH to
tries’ offshore zones. Gabriel Mbaga Obiang Lima drew attention to the world in 2018 and then followed by striking
the project. He noted that Malabo had already a deal on the first phase of the project the fol-
WHY: initiated the first phase of MGH and said it was lowing year.
Initially, the plan will now looking to generate momentum for the That deal provided for US-based Noble
focus on stabilising do-
mestic gas yields, which second phase, which is designed to make Punta Energy, which is now under the control of Chev-
are on the way down. Europa a regional hub capable of facilitating ron, to proceed with the Alen gas monetisation
the production and export of gas from multi- project. It called for Noble to shift the focus of
WHAT NEXT: ple countries with offshore fields in the Gulf of upstream development work at the Alen field in
Plans to handle foreign Guinea. the Douala basin from gas condensate to natu-
gas will face steep Lima’s statements indicate that Equatorial ral gas – that is, to shift from flaring off natural
hurdles. Guinea is aiming high and working to diversify gas or re-injecting it to help maintain reservoir
and grow its economy by prioritising regional pressure in condensate deposits to collecting gas
trade and making preparations for the time in order to sell it.
when its own crude oil and natural gas resources Chevron then announced in February of this
run out. And that day certainly is coming; the year that it had commenced work on the Alen
country’s oil production peaked in 2004, while project.

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