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24 Jan 2020 | 10:50 UTC — London
Highlights
Designed to help backfill EG LNG facility
Minister says Marathon committed to Gas Mega Hub
Second train at LNG complex under consideration
London — Equatorial Guinea hopes that first gas from the Noble Energy-operated Alen field offshore the West African country can be delivered ahead of schedule by the end of 2020.
First gas from Alen -- which will help backfill Equatorial Guinea's one-train, 3.7 million mt/year EG LNG export facility on Bioko Island -- was originally expected in the first quarter of 2021.
The EG LNG complex at Punta Europa -- which shipped its first LNG cargo in 2007 -- has traditionally relied on gas from the now declining Marathon-operated Alba gas field, so more gas is needed to maintain export levels.
Marathon is also an operating partner in the LNG plant.
According to a statement carried by the African Energy Chamber, the Equatorial Guinea oil ministry said Marathon continued to prioritize the Alen backfill project.
"Efforts are underway to accelerate [Alen] gas for delivery by year-end 2020, while currently scheduled for first quarter 2021," the ministry said.
"The project is an important step toward replacing declining output from the Alba field."
Neither Noble nor Marathon was available for comment despite repeated requests.
However, on its website, Noble says it is still targeting first gas from Alen in the first half of 2021.
Equatorial Guinea hopes to transform its Punta Europa site into a Gas Mega Hub that would aggregate gas discoveries from across the region for export to global markets.
The oil ministry signed a deal with Vitol in November last year for the global trader to become a strategic partner in the Gas Mega Hub project.
Oil minister Gabriel Obiang Lima met this week with Marathon CEO Lee Tillman to discuss the company's short- and long-term plans in the country.
The ministry said Marathon had "reiterated its commitment" to Equatorial Guinea and the development of the Gas Mega Hub.
This includes unlocking funding to promote the delivery of gas from neighboring countries and cross-border fields to maximize existing facilities and possibly a second LNG train.
"Marathon's disciplined and consistent performance is going to ensure that Equatorial Guinea can continue to count on a partner that is tried, true and tested when it comes to running world-class gas projects," Obiang said.
Marathon on its website says its agreement to process gas from Alen at Punta Europa is a "significant step toward solidifying Punta Europa as a cornerstone component of the Equatorial Guinea Gas Mega Hub for the potential development of local and regional gas."
It also says first gas sales from the Alen unit are expected in 2021 and will utilize available processing capacity not required by the Alba field.