The Ministry of Mines and Hydrocarbons, Ophir Equatorial Guinea Ltd, OneLNG SA and La Compania Nacional De Petroleos De Guinea Ecuatorial have nominated Gunvor Group as their preferred LNG Buyer for offtake from the Fortuna FLNG project
All parties have agreed the principal commercial terms subject to finalising a Sale and Purchase Agreement for the offtake ahead of the Final Investment Decision on the Fortuna FLNG project.
Gunvor is committed to taking the full contract capacity of the Gandria FLNG vessel of 2.2 MMTPA, which will be purchased on a Brent-linked, Free on Board basis for a 10-year term. The contract structure allows flexibility for up to 1.1 MMTPA of the Fortuna capacity to be marketed on an alternate basis. Consequently, the agreement gives the Fortuna partners, alongside the State of Equatorial Guinea, the potential to sell volumes to higher priced gas markets in Africa and beyond, whilst retaining a share in the profits of such sales.
With a preferred LNG Buyer now nominated, the last significant milestone remaining prior to FID for the Fortuna FLNG project is the completion of project funding, with FID remaining on track for later in 2017.
His Excellency, Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for the Republic of Equatorial Guinea, commented: “The selection of Gunvor sets a landmark moment in the development of the Fortuna Project. The partnership with Gunvor also paves the way for the government’s objective to deliver important projects that monetize our gas, promotes local content and brings world-class petroleum technology to Equatorial Guinea. The Fortuna Project will target becoming the first choice supplier of LNG for the LNG to Africa initiative, furthering Equatorial Guinea’s leadership position in Africa as an LNG exporter.”
Jeff Goodrich, CEO OneLNG SA, commented: “OneLNG, along with the State of Equatorial Guinea and Ophir, would like to take the opportunity to welcome Gunvor to the Fortuna family. We look forward to working together to set the new performance benchmark in FLNG.”
