Ghana, Eq Guinea Sign LNG Accord
Equatorial Guinea has signed a memorandum of understanding (MoU) with Ghana for LNG supplies.
According to the government-to-government agreement signed August 23, Equatorial Guinea will provide Ghana with 150 to 200mn ft3/d of gas in the form of LNG (1.1 to 1.5mn mt/yr) over 15 years. Reports did not say when planned supplies would begin, or name any commercial supplier and offtaker.
As the existing 3.7mn mt/yr EGLNG plant onshore Equatorial Guinea is almost fully contracted to Shell until 2023, supply might come from the country’s Fortuna floating LNG project led by Ophir – due for start up 2020. The government has an interest in both ventures. Fortuna recently selected trader Gunvor as contractual lifter of 1.1mn mt/yr but that leaves a similar amount potentially for sale by Fortuna to local and Asian markets.
Ghana needs more gas to satisfy its power generation requirements, but has delayed authorising LNG import projects that could source spot LNG from the currently low-priced world market.
The MoU, which is renewable every five years, was signed by Ghanaian energy minister Boakye Agyarko and his Equatoguinean counterpart Gabriel Mbaga Obiang Lima, in the presence of their respective country presidents Nana Akufo-Addo and Teodoro Obiang Nguema Mbasogo.
Agyarko noted that the two countries had signed many similar agreements in the past that came to nothing, adding: "But this time, we have been given the marching orders by both Presidents to make sure that by the end of 2017, the agreements come live." The MoU was signed during a three-day visit by Akufo-Addo to the Equatoguinean capital Malabo.
Ghana is supplied with associated gas from the Tullow-operated Jubilee and TEN oil fields, and from 2018 will also be by the Eni-operated OCTP fields. But Nigerian imports via the 678km-long West African Gas Pipeline, which were intended to be 120mn ft3/d, have in recent years been only 30mn ft3/d. This makes successive Ghanaian governments' delaying of authorisations for LNG import projects all the more baffling.
Agyarko said Equatoguinean LNG could enable it to boost generation from Ghana's Sunon Asogli gas-fired power plant to 580MW, from 120MW now.
Olivier de Souza