Ministerio de Minas e Hidrocarburos MMH
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H. E. Antonio Oburu Ondo, Minister of Mines and Hydrocarbons is pleased to announce that Heads of Agreement (HOA) have been signed between the Republic of E.G., Noble Energy EG Ltd, a Chevron company, and Marathon Oil E.G. Holding Limited, a Marathon Oil affiliate company to further expand and develop E.G.’s Gas Mega Hub (GMH). The HOA is yet another demonstration of the EG Government’s steadfast commitment to building long-term and sustainable value for EG and its people through our partnerships.
Signing of the HOA enables the expansion of the GMH via Phases II and III by building on the interlinked gas complex success at the Punta Europa facilities. Phase II will enable the processing of Alba Unit tail gas from 1 January 2024, while Phase III will facilitate the processing of gas from the Aseng Field, each via the Punta Europa facilities. With the HOA, we have aligned on the commercial principles that are required to support the necessary investment for securing and maximizing processing and liquefaction of future gas volumes from the Alba Field and the Aseng Field. The EG Government, represented by the Ministry of Mines & Hydrocarbons, has taken an active role towards leading the successful implementation of Phases II and III by ensuring the rapid kickoff of the project, and is closely monitoring the subsequent activities and negotiations to ensure the objectives of the GMH are met in a timely manner.
In addition to the commercial benefits for all involved, this expanded development also secures future fuel gas volumes for EG’s power generation needs, provides longer-term employment opportunities for the Equatoguinean people and will positively impact the economy of our local communities.
Background
The GMH was inaugurated in 2018 after signing a Heads of Agreement that established the commercial framework for monetizing the Alen Field wet gas volumes at Punta Europa.
Phase I of the GMH was successfully achieved with the Alen tie-back to Punta Europa, which delivered its first gas in February 2021 and has allowed the various Alen partners to lift and successfully market both Liquified Natural Gas (LNG) and Liquified Petroleum Gas (LPG) volumes.
The GMH concept has proven to be a successful mid-stream infrastructure and commercial model. It is expected to continue to provide a fast track option to future investment decisions that will enable additional regional gas development opportunities.
Source: Technical Communication Office (MMH)
Editing and Publication: Federico SOLEBAPA MOCHE
MINISTRY OF MINES AND HYDROCARBONS.
