Saipem wins US$90-100mn pipeline contract offshore Equatorial Guinea

GMOL 2Equatorial Guinea’s Ministry of Mines and Hydrocarbons has approved a 70-km pipeline that will link the Alen Unit, operated by Noble Energy, and the petrochemical complex of Punta Europa within the framework of the country’s gas monetisation project

The US$90-100mn contract has been awarded to Italian contractor Saipem. The 70km pipeline will have a capacity for 950mn cfd.

The ministry stated that gas has been re-injected into the field – extending the life of the LNG Train 1. First gas is expected to be delivered during Q1 2021.

The contract, which will be strictly monitored by the Ministry of Mines and Hydrocarbons, 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, as it is priority of the Ministry,” said the country’s minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.

The final investment decision of the gas monetisation project of the Alen-Backfilling unit was signed in Malabo in April. The “backfill” links producing gas fields in Equatorial Guinea to onshore LNG facilities. It is widely considered the first phase of the Gas Megahub vision, which aims to turn the Island of Bioko into a mega-centre of gas processing.

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