May 19, 2024
LNG: Perenco Reaches Another Milestone in Gas Agenda with FID Secured for Gabon Facility
Middle East: Oil demand remains low despite the ease in COVID-19 lockdown
– By Godswill Odiong

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Following a series of industry achievements (https://apo-opa.info/3lGro9Q) by Perenco in the last year, the independent oil and gas company has reached another milestone in its African gas agenda, reaching a final investment decision (FID) for a 700,000-ton Liquefied Natural Gas (LNG) facility in Gabon – based at the Cap Lopez terminal. The move not only represents a critical step forward towards achieving fuel security in West Africa but serves to enhance Perenco’s expansion into the African natural gas landscape, positioning the company at the forefront of the continent’s energy transformation.

With FID secured, construction of the large-scale LNG facility can officially kick off. For its part, the project represents a significant development for Gabon (https://apo-opa.info/40YppxT), with an initial investment of $1 billion and a development timeline of up to three years. Production is likely to commence in 2026, with the facility producing 700,000 tons of LNG per year as well as 20,000 tons of butane per year. With the project, Perenco will position the country as a self-sufficient nation in terms of butane supply as well as a major exporter of natural gas through LNG.

With an extensive track record of delivering successful oil and gas projects in Gabon – as well as across the African energy landscape –, the FID consolidates Perenco’s commitment to monetizing African gas. Having started producing oil in Gabon in 1992 with the acquisition of mature fields off Port-Gentil, 26 years on, the company has increased production from 8,000 barrels per day (bpd) to 100,000 bpd. Now, the company operates both on- and offshore licenses in addition to two floating offshore storage and offloading (FPSO) units. As such, the company has been producing and supply gas, critical for power generation industrialization and economic growth, to the country for over ten years, a trend which is only set to continue with the company’s upcoming LNG facility.

“The drive by Perenco in Gabon as well as across other resource-rich countries in Africa solidifies the company’s commitment to ushering in a new era of economic prosperity across the continent on the back of oil and gas. We are excited to see the company hit another milestone with the securing of FID for an LNG facility in Gabon, and we consider this a critical step forward towards achieving energy security and fuel independence in Africa. This achievement represents just one of the many driven by Perenco and we look forward to seeing a fruitful and successful future, both for the company and the countries in which Perenco operates,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).

This achievement follows a series of other sector expansion milestones reached by the company in recent years. Under a broader gas expansion agenda in Africa, Perenco developed and is now operating the Hilli Episeyo Floating LNG facility in Cameroon – the first of its kind worldwide -; acquired Glencore’s entire upstream interests in North Africa, with the company now holding full operatorship of PetroChad Mangara – the operator of the Mangara, Badila and Krim oilfields in Chad -; now operates both the Emeraude and Likouala fields as well as the Yombo field with a FPSO unit and the PNGF South Fields in the Republic of Congo; and represents the only operating company in the Democratic Republic of the Congo, with 11 fields producing approximately 25,000 bpd. All of these milestones have not only positioned the company as a major player in the African oil and gas sector but have consolidated its role as a partner of choice for governments across the continent.

Achievements such as this will be further unpacked during the continent’s premier event for the oil and gas sector, African Energy Week (AEW) 2023 (https://AECWeek.com) – taking place from 16-20 October in Cape Town. Under a mandate of making energy poverty history by 2030, the event represents the official platform where deals are signed and developments are kicked off. As Gabon enters into a new era of industry growth on the back of LNG, AEW 2023 will drive new investment into other large-scale gas projects across Africa, with major players such as Perenco driving this expansion.

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