LPG purchase negotiations open in Equatorial Guinea

EQUATORIALGUINEA LPGSONAGAS plans to sell its 40 per cent stake in the Alba Plant in 2016. (Image Source: Marathon Oil)SONAGAS, Equatorial Guinea's national gas company, will begin marketing the its share of LPG produced at the Alba Plant on Bioko Island, the country's Ministry of Mines, Industry and Energy has announced

 

Negotiations have been opened by SONAGAS with offtakers and marketing of its LPG production stake to international buyers will start from 1 January 2016. SONAGAS, with the government of Equatorial Guinea, is a 20 per cent shareholder, with Marathon Oil and Noble Energy each holding a 40 per cent stake at the Alba plant, situated at the Punta Europa gas complex.

Boosting local content in the Equatorial Guinea LPG sector is one of the aims of the SONAGAS share sale, according to H.E Gabriel Mbaga Obiang Lima, Minister of Mines, Industry and Energy.

"SONAGAS marketing its share of LPG fulfills one of the major objectives envisaged by the state in creating the company a decade ago, that of a national gas company with capacity across the spectrum of gas activities," he said. "SONAGAS is evolving to take on more of the gas business, not only as a shareholder at Punta Europa, but throughout the entire value chain."

The Alba plant commenced operations in 1991 and was upgraded in 2003-2005. It produces 8,000 barrels per day of butane, 14,000 barrels per day of propane, and 6,000 barrels per day of condensed gas. SONAGAS was established in 2005 to develop gas projects on behalf of the government of Equatorial Guinea.

 

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