Equatorial Guinea and Burkina Faso sign agreement on liquefied natural gas

The Equatorial Guinean government and its counterpart from Burkina Faso have signed a Memorandum of Understanding (MoU), which is expected to lead Malabo’s supply of liquefied natural gas (LNG) ) in Ouagadougou. The agreement, signed on Monday, requires both parties to negotiate and execute a LNG (SPA) purchase and sale contract, as well as a terminal use agreement (TUA) to the first LNG transaction.

As World Oil says , the two countries will work closely to build critical infrastructure to import, store and transport LNG, but will also exchange data in efforts to achieve this project.

The MoU also offers Equatorial Guinea the opportunity to explore and develop oil and gas production in Burkina Faso.

« We are delighted to have signed an agreement with our brothers in Burkina Faso to provide them with crucial energy resources . This collaboration with Burkina Faso is part of our Africa LNG initiative 2 which will highlight the cooperation of African countries in the energy sector. It will also help build the infrastructure needed to strengthen our economies, «  said Gabriel Mbaga Obiang Lima (photo), the Equatorial Guinean Minister of Hydrocarbons.

Equatorial Guinea currently exports 3.4 Mtp of LNG. It is expected to increase export volume by 2.2 Mtpp through the Fortuna LNG project, which is expected to enter service in 2020. It will be the first deepwater natural gas liquefaction project in Africa.

Source: Ecofin Agency