Equatorial Guinea signs definitive agreements for Alen Unit gas monetisation project

1d7207c9c225b105311d06c3523338f1Equatorial Guinea's Ministry of Mines and Hydrocarbons has executed the definitive agreements with Alen Unit and the respective owners of Punta Europa Plant to monetise gas from the Alen Unit

The unit is located in Equatorial Guinea (EG) offshore blocks O and I and operated by Noble Energy EG Ltd.

The definitive agreements commit to tolling Alen Unit gas through the LPG processing plant of Alba Plant LLC and the LNG production facility of EG LNG, both located in Punta Europa. Marathon Oil is the majority shareholder in both Alba Plant LLC and EG LNG. This agreement will see Sonagas GE, Equatorial Guinea’s national gas company, increase from 25 per cent to 30 per cent.

The Alen Platform and Punta Europa already have existing production and processing facilities in place. The offshore platform of Alen will undergo minor export gas modifications while the primary condensate will continue to be produced and lifted offshore via the Aseng FPSO.

The joint venture of Alen Unit will install and operate a 70-km gas pipeline from the Alen Platform to Punta Europa, where it will be processed and transported for sale on the global market.

The pipeline will be able to transport approximately 950 mmscfd of gas. First gas is expected in the 1Q of 2021. The Alen Unit gas monetisation project will leverage the capacity of the world-class Punta Europa facilities. Modifications are already underway at Alba Plant in order to receive Alen Unit gas. No process modifications are expected at EG LNG to process Alen Unit gas.

The project will provide an additional source of gas for the Punta Europa facilities and transform the Alen platform into an offshore gas hub for the development of Alen Unit gas, other Block O and I discoveries and potentially additional Gulf of Guinea gas fields.

The Alen Gas Offshore Hub will be the first hub in the government’s vision of developing Equatorial Guinea as a Gas Mega Hub, comprising of additional offshore gas hubs, all feeding gas into the Punta Europa facilities.

Gabriel Mbaga Obiang Lima, minister of mines and hydrocarbons, said, “Monetisation of Alen Unit gas could deliver around US$1.5-2bn in additional state revenues over the life of the project, including revenues from Alen Unit and respective Punta Europa plants.”

“Local content is going to play an integral part in the implementation of the project when it comes to contracting and jobs for our citizens. I am happy this project will support the employment of Equatoguineans employed by the Punta Europa plants and Alen platform, which currently stands at approximately 1,400 employees in total,” he added.

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