Côte d’Ivoire, Equatorial Guinea and Ghana sign MoU

ABIDJAN, May 28, 2014 – The energy ministers of Côte d’Ivoire, Equatorial Guinea and Ghana met last week in the Ivorian capital Abidjan to sign a memorandum of understanding for creating a framework for a regional gas company.

The three ministers – Adama Toungara of Côte d’Ivoire, Gabriel Mbaga Obiang Lima of Equatorial Guinea and Emmanuel Armah-Kofi Buah of Ghana – agreed to provide financial resources for a feasibility study for the company, which would be jointly owned by the three nations. The study is expected to be carried out in the coming months.

The memorandum of understanding is the first document signed in preparation for what is being referred to as the Gulf of Guinea Regional Gas Company and will instigate the feasibility study, which will determine if the development can move forward.

At the meeting, the ministers outlined the key benefits of forming the company. Foremost among these would be Equatorial Guinea’s drive to increase exploitation of its natural gas reserves. The country’s probable reserves currently stand at 269 bcm (9.5 tcf).

The initiative will also enable gas to be distributed to power plants, homes and industries as a source of energy or a feedstock. The source of the gas used for these purposes has not been made clear.

Although the location of the company‘s base of operations, as well as its projects, has not been decided, it is expected to create a significant number of new jobs.

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