US-based producer Noble Energy has signed a provisional deal with the government of Equatorial Guinea for natural gas from its offshore Alen field to serve the Marathon Oil-operated LNG plant on Bioko Island, Noble said Thursday.
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The deal -- which will also see gas from Alen supply the Alba Plant LPG facility -- will see Noble monetize an additional 600 Bcf of gas and extend the lifetime of the 3.7 million mt/year capacity EG LNG plant.
"This is a significant milestone as it marks the first step to monetizing a substantial amount of gas from the Alen field through existing infrastructure on Bioko Island," Noble vice president Gary Willingham said.
"This project will transform the Alen platform into an offshore hub for potential development of additional gas fields nearby," he said, adding first production was anticipated early in the next decade.
Equatorial Guinea's Minister of Mines and Hydrocarbons, Gabriel Obiang Lima, said at a London conference Thursday the deal would help keep the Punta Europe complex -- home to the LNG and LPG plants -- well supplied with gas for the coming years.
EG LNG shipped 65 cargoes in 2017, supplying the equivalent of 5.5 Bcm to global LNG markets, according to data from S&P Global Platts Analytics.
The main receiving markets were India, Japan, China, South Korea, Jordan and Argentina.
EG LNG shareholders are Marathon (60%), Sonagas (25%), Mitsui (8.5%) and Marubeni (6.5%).
DEVELOPMENT FRAMEWORK
Noble said the heads of agreement signed Wednesday established the "framework for development" of gas from the Alen field.
"The structure contemplated would result in the Alen field partners and the EG LNG owners accessing global LNG markets. Sanction of the project is contingent upon final commercial agreements being executed," Noble said.
Existing production and processing facilities in place at the Alen platform and in Punta Europa require only minor modifications to produce and process the Alen gas, it said.
The agreement contemplates construction of a 65 km pipeline to transport gas from the Alen platform to the facilities in Punta Europa. The pipeline is being designed with capacity to handle production from multiple fields.
The Alen field has been producing gas and condensate since field start-up in 2013, but gas produced to date has been re-injected into the reservoir to enhance liquids recovery.
Gas from Noble's Aseng field was also expected to contribute to the supply to Punta Europe.
Marathon's own Alba field has been the main feedstock for supplies to the LNG plant up to now.
