Equatorial Guinea eyes Europe as LNG market

Equatorial Guinea’s minister of mines and hydrocarbons, Gabriel Mbaga Obiang Lima, said on Wednesday that his country is eyeing Europe as a key market for LNG supplies from the Fortuna LNG project.

Speaking in Singapore, where Lima is in talks with potential offtakers, the minister said the country would face stiff competition in supplying the Asian market. “We are seeing that the European market is becoming more attractive for the future than Asia,” Lima was quoted as saying by Reuters. He added that the final investment decision on Ophir Energy’s 2.2-million-tpy FLNG project is expected by the end of 2016, with 2019 set as the targeted completion date. In April, Ophir projected first gas by early 2020.

Commenting on the negotiations, Lima said they had entered “the final phases.” “One of the key criteria of this project that has not been decided yet is the fiscal terms that the government would provide to the project,” he explained, adding that the government was striving towards breakeven costs of some USD 6-7 per million British thermal units.

Lima also touched upon the planned EGRonda 2016 Oil and Gas Licensing Round, saying that the current oil price slump could work in the country’s favour. “The big majors are the ones acquiring assets because they understand that this is the best time to get positions and because they have the funds […] A lot of the majors have shown interest and I would not be surprised that if at the end the majors are the ones who get the majority of the acreage.”