Equatorial Guinea and Burkina Faso sign LNG and exploration deal

16319136333 db595b65a2 zOffshore gas resources are expected to play an important role in the future of the Equatorial Guinean industry. (Image Source: Marat Assanov/Flickr)In a boost for the west African gas market, Equatorial Guinea has entered into a liquefied natural gas (LNG) sales and infrastructure agreement with Burkina Faso

Equatorial Guinea's Ministry of Mines and Hydrocarbons singed a MoU with the government of Burkina Faso. This agreement means Equatorial Guinea will supply Burkina Faso with LNG and build infrastructure for the importation, storage and transportation of gas. Transportation options are expected to include pipelines and LNG carriers.

Initially, the agreement is for a three-year period. It compels both countries to negotiate and sign an LNG sales and purchase agreement and a terminal use agreement to form the basis of the first LNG exchange. Both countries will commission a technical study for the regasification and LNG storage terminals, as well as exchanging knowledge and data, 

Oil and gas development is part of the agreement with a call in the MoU for Equatorial Guinea to explore and produce oil and gas in Burkina Faso.

"We are very pleased to strike this agreement and be given the opportunity to supply our African brothers in Burkina Faso with crucial gas resources," said Gabriel Mbaga Obiang Lima, Equatorial Guinea's mines and hydrocarbons minister. "This collaboration with Burkina Faso, part of our LNG 2 Africa initiative, highlights the important responsibility of African countries to cooperate in the energy sector and build the necessary infrastructure to strengthen our economies." 

Equatorial Guinea is one of the biggest LNG producers in Africa, exporting 3.4mn tonnes globally each year. It is looking to expand export capacity with the Fortuna FLNG project, which is on track to reach FID by the end of the year. it is expected to go online in 2020 as Africa's first deepwater FLNG project. In May this year, the country signed an agreement with the OneLNG joint venture to explore the potential of natural gas in two offshore blocks.

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