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Equatorial Guinea aims to move ahead

with modular refinery project

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

P8 www. NEWSBASE .com Week 38 24•September•2020