Tuesday, January 24, 2012

Equatorial Guinea Expands LNG Project

Ministry of Mines, Industry and Energy Takes Step Further in the Implementation of Train II

Equatorial Guinea’s Minister of Mines, Energy and Industry, Marcelino Owono Edu, finalized new agreements on the implementation of the liquefied natural gas (LNG) Train II project on January 17, 2012 in Lisbon. The agreements distinguish the key areas of the project, taking them a step closer toward implementation.

LNG Train II follows the development of LNG Train I, which was opened in May 2007 to monetize the expansive gas reserves throughout the country. It produces approximately 3.7 million tons of LNG a year, making Equatorial Guinea the third-largest producer of LNG from the African Atlantic basin.

The success of Train I spurred the development of Train II, with the idea of making Equatorial Guinea a regional gas hub. “Equatorial Guinea is determined to continue to develop the gas industry and compete in the Atlantic Basin market,” said the Delegate Minister of Mines, Energy and Industry, Gabriel M. Obiang Lima.

In addition to Minister Owono, the agreements were also signed by SONAGAS GE (the national oil company of Equatorial Guinea), Glencore, Atlas Petroleum and Osborne Resources and the partners of Block R, among others.

The next step in the development of Train II is to define the project scope, which will include the plant size and timing of the project. The goal is to have the first production of LNG shipped by 2016.