Equatorial Guinea, Burkina Faso in LNG deal

Equatorial Guinea has signed a three-year MoU for the sale of LNG to Burkina Faso, the Equatoguinean Ministry of Mines and Hydrocarbons announced on Monday.

The deal envisions Equatoguinean investment in LNG infrastructure and oil and gas exploration in Burkina Faso and requires both sides to conduct technical studies for the building of regasification and storage terminals.

“We are very pleased to strike this agreement and be given the opportunity to supply our African brothers in Burkina Faso with crucial gas resources,” Equatorial Guinea’s minister of mines and hydrocarbons, Gabriel Mbaga Obiang Lima, said in a statement.

“This collaboration with Burkina Faso, part of our LNG 2 Africa initiative, highlights the important responsibility of African countries to cooperate in the energy sector and build the necessary infrastructure to strengthen our economies.”

The news comes as Equatorial Guinea is looking for new LNG markets where it can offload its expanding output. Some of the gas would come from the 2.2-million-tpy Fortuna FLNG project, expected to come on stream in 2020, which is on track for an FID by year-end, the statement added.