EQUATORIAL GUINEA — Equatorial Guinea’s Ministry of Mines and Hydrocarbons has approved the $90-100 million Alen Unit contract granted to Saipem for the construction of 70km pipeline connecting Alen gas production unit to the petrochemical complex of Punta Europa.
The pipeline according to a report by Africa Energy Chamber, will have capacity for 950 million cubic feet of gas per day from fields operated by Noble Energy and the first gas is expected to be delivered during the first quarter of 2021.
The project is within the framework of Equatorial Guinea’s gas monetization project and the contract awarded to the Italian contractor Saipem will be strictly monitored by the Ministry of Mines and Hydrocarbons.
The ministry of mines and hydrocarbon noted that the project will financially benefit local companies participating in the multiple agreements identified under the scope of the contract.
“We anticipate that this contract, which is being approved exceptionally under the given circumstances, will contribute immensely to improving the performance of local businesses and the creation of employment,” said Equatorial Guinea’s Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima.
The final investment decision of the gas monetization project of the Alen-Backfilling unit which links producing gas fields in Equatorial Guinea to onshore LNG facilities was signed in Malabo in April.
It is widely considered the first phase of the Gas Megahub vision, which aims to turn the Island of Bioko into a mega-center of gas processing.
Equatorial Guinea has proven natural gas reserves estimated of 4.5 trillion cubic feet (37×109 m3), according to the Oil & Gas Journal.
The country’s natural gas reserves are located off Bioko island, which is the site of the nation’s capital, Malabo, and mainly in the Zafiro and Alba oil and gas
EG LNG (also known as Punta Europa LNG) which is going to be connected to the Aluta unit by the 70km pipeline is one of the major liquefied natural gas (LNG) companies in the country and it operates an LNG terminal and plant at Malabo, the capital city of Equatorial Guinea located on Bioko Island.