Perenco Cameroon launches gas-to-industry supply project

Perenco Cameroon has announced the launch of the Perenco Group's first gas-to-industry supply project in Central Africa with delivery of gas from the Bipaga Gas Processing Centre, operated by Perenco Cameroon, to the ceramic manufacturing plant of Keda Ceramics

The gas is being transported via the 6 km pipeline built and operated by the Société Nationale des Hydrocarbures (SNH) and is being used to power the factory's electrical generators, as well as the kilns necessary for the manufacturing of ceramic tiles by Keda.

Following the commissioning phase, the factory will consume up to 6 mmscfd and will ensure the production of approximately 20 mn cu/m of tiles of different sizes intended for the local Cameroonian market, which equates to approximately two thirds of the domestic requirement. The start of production of this important factory, the largest in operation in Central Africa, will help to create approximately 2,000 direct and indirect jobs in the Kribi region.

The supply of gas from the Bipaga Processing Centre, framed by a gas sales contract (GSA) signed in September 2022 between Perenco Cameroon and its partner SNH, is valid for 20 years. This new energy supply is key to regional industrial development and enables Keda to achieve the required technical specifications for the most economical production of ceramics, while utilising clean, low-cost energy. 

The move also aligns with the International Monetary Fund's 2023 prediction that in the coming years, LNG will become a key driver of economic activity in the Central African country.  

Gas strategy gains steam

Keda Ceramics is now a new industrial client for the Sanaga Sud Association and its partners Perenco Cameroon and SNH. This project represents a significant growth opportunity which secures the industrial future of the Bipaga-Sanaga site and enables Perenco Cameroon to pursue its gas strategy initiated 15 years ago.

The conclusion of this project was marked by an inauguration ceremony for the new facilities, attended by SNH and local Cameroonian authorities. Yves Postec, managing director of Perenco in Cameroon, said, “Perenco Cameroon’s first gas-to-industry project marks an important milestone and strengthens the fruitful and historic partnership between Perenco Cameroon and SNH. The delivery of gas to Keda Ceramics builds upon our successful track record of project delivery in collaboration with SNH in Cameroon, such as the 20-year production sharing agreement for Rio del Rey signed last year and our joint contract for Golar LNG’s Hilli FLNG unit. Our goal in delivering these projects is centred on exploiting and developing Cameroon’s gas resources to support the social, industrial and economic development of Cameroon. Perenco Cameroon’s efforts to achieve this goal are only made possible through our continued cooperation with our partners at SNH who share our vision for transforming Cameroon.”