Equatorial Guinea pushes local LNG trade

17 April 2018, Week 15, Issue 735

Equatorial Guinea has continued its push to find new customers for its LNG exports, with the country’s energy minister visiting Togo and Burkina Faso recently. This builds on previous deals in August and September 2017, which resulted in a 15-year deal for LNG supplies to Ghana. 

Equatorial Guinea’s Minister of Mines, Industry and Energy Gabriel Mbaga Obiang Lima – also the son of the president – signed a co-operation agreement with Togolese Minister of Mines and Energy Marc Dederiwe Abli-Bidamon on LNG trade. 

The memorandum of understanding (MoU) created a framework for Togo to import gas from Equatorial Guinea, the statement from Malabo said. This was part of its LNG2Africa initiative, through which Equatorial Guinea intends to promote the consumption of LNG throughout Africa, using locally sourced gas. 

The statement said Togo would consider the import, regasification and power generation aspects of LNG. 

“It is imperative that African nations monetise their gas, and that energy users benefit from this cheaper, cleaner, locally produced resource,” Obiang Lima said. “Equatorial Guinea is committed to working with its neighbours in the region to find solutions that bring benefit to us all. We look forward to a strong partnership with Togo.” He also noted the plan – backed by Ophir Energy – for a floating LNG (FLNG) plant in the country’s waters. 

Also taking part in the visit were Elite Construcciones, Norgas and General Electric, which were reported to have participated in discussions on small scale LNG trade in West Africa. 

Before coming to Lome, Obiang Lima visited landlocked Burkina Faso, where he held talks with Burkinabe Minister of Energy Bechir Ismael Quedraogo. The two countries talked on implementing an MoU signed in September 2017, also under the LNG2Africa scheme. 

The MoU with Burkina Faso runs for an initial three years, according to announcements from last year, during which a sales and purchase agreement and a terminal use agreement (TUA) can be signed. The agreement also covered Equatorial Guinea exploring for oil and gas in Burkina Faso. 

Economically, it would seem unlikely that regasification facilities will be built in every country, particularly in Togo. More plausibly, a floating storage and regasification unit (FSRU) could be installed in Ghana with supplies being distributed from there, potentially via a reversed West African Gas Pipeline (WAGP). 

Edited by

Ed Reed

Editor

Any questions? Please get in touch