With over five trillion cubic feet (tcf) of proven natural gas reserves and a strong infrastructure base, Equatorial Guinea has been making great strides towards establishing itself as a regional gas processing hub. Under the country’s Gas Mega Hub (GMH) initiative, the Government has partnered with a strong slate of regional and foreign energy firms under efforts to scale-up project developments and unlock untapped reserves in offshore basins across West Africa. In line with the country’s recent regional engagement focus, Equatorial Guinea’s Ministry of Mines and Hydrocarbons has joined the African Energy Week (AEW) 2023 conference and exhibition as a Gold Sponsor.
As a sustainable energy solution, natural gas has taken on a pivotal role as a catalyst for long-term economic growth in Equatorial Guinea. Producing less emissions than traditional fossil fuels, gas offers the country the chance to catalyze job creation, infrastructure development and value creation while reducing emissions and strengthening resilience to climate change. As such, the Ministry of Mines and Hydrocarbons has been proactive in its approach to securing the investment needed to unlock sustainable gas developments.
Now, Equatorial Guinea is well on its way to becoming a regional hub for liquefaction and distribution. The GMH initiative has laid the foundation for Equatorial Guinea to monetize resources in both domestic and regional basins. Phase One of the GMH comprises the tie-back of the Alen Field to the Punta Europa Liquefied Natural Gas (LNG) terminal located on Bioko Island, with first gas delivered in 2021, while Phase Two comprises processing gas from the Alba Field. Phase Three will see gas processed from the Noble Energy-led Aseng Field. An agreement was signed with Marathon Oil for the second and third phases in March 2023, and according to the Minister of Mines and Hydrocarbons Antonio Oburu Ondo, phase two is poised to come online as early as 2024.
Notwithstanding in-country progress to monetize resources, Equatorial Guinea’s Ministry of Mines and Hydrocarbons has partnered with several of its regional counterparts to create avenues for processing gas from the respective West African nations. Agreements put in place include with Cameroon, the Republic of Congo and Nigeria, all of which are a testament to Equatorial Guinea’s commitment to developing the regional energy market. The country has also been engaged with a suite of international energy companies, having formalized attractive fiscal terms that incentivize foreign investment and participation. This year, the Government signed three Production Sharing Contracts (PSC) aimed at expanding exploration and production. PSCs were signed with Panoro Energy for Block EG-01 and two with Africa Oil Corporation for Block EG-18 and Block EG-31.
As global interest in African gas heightens, Equatorial Guinea’s strong regulatory foundation, commitment to mutually beneficial investment terms and wealth of opportunities are poised to unlock further development prospects for the country. Additionally, with local content, regional cooperation and technology development at the core, the country’s ambitions to become a regional energy hub are set to drive the next wave of sustainable economic growth in West Africa. During AEW 2023, these efforts will bring to light the transformative potential of gas in Africa as well as the pivotal contribution of the Government in aligning national interests with global energy trends.
“Equatorial Guinea’s Ministry of Mines and Hydrocarbons serves as a benchmark for other Ministries across the African continent. Representing the Government’s interests and with a commitment to delivering sustainable energy solutions for the development of West Africa, the Ministry continues to make great strides towards unlocking and monetizing regional gas reserves. These efforts are bound to accelerate the country’s progress towards making energy poverty history by 2030,” states NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
As a Gold Sponsor of AEW 2023, Equatorial Guinea’s Ministry of Mines and Hydrocarbons will spearhead a number of industry-focused topics and meetings. In addition to leading the Invest in Equatorial Guinea Energies sessions during the event, the Ministry’s participation opens up new opportunities for engagement and deals among African and global energy players.
