Equatorial Guinea’s Ministry approves $90-100m contracts granted to Saipem

The contract, which will be strictly monitored by the Ministry of Mines and Hydrocarbons, will financially benefit local companies participating in the multiple agreements identified under the scope of the contract.

Equatorial Guinea’s Ministry of Mines and Hydrocarbons has approved the $90-100 million Alen Unit contract granted to Saipem; the 70km pipeline will have the capacity for 950 million cubic feet of gas per day from fields operated by Noble Energy; first gas is expected to be delivered during the first quarter of 2021.

Equatorial Guinea’s Ministry of Mines and Hydrocarbons has approved a 70-km pipeline that will link the Alen Unit, operated by Noble Energy, and the petrochemical complex of Punta Europa within the framework of Equatorial Guinea’s gas monetization project. The $90-100 million contracts have been awarded to Italian contractor Saipem. Gas has been re-injected into the field – extending the life of the Liquefied Natural Gas Train 1. The first gas is expected to be delivered during the first quarter of 2021.

The contract, which will be strictly monitored by the Ministry of Mines and Hydrocarbons, will financially benefit local companies participating in the multiple agreements identified under the scope of the contract.

“We anticipate that this contract, which is being approved exceptionally under the given circumstances, will contribute immensely to improving the performance of local businesses and the creation of employment, as it is a priority of the Ministry,” says Equatorial Guinea’s Minister of Mines and Hydrocarbons, H.E. Gabriel Mbaga Obiang Lima.

The final investment decision of the gas monetization project of the Alen-Backfilling unit was signed in Malabo in April. The “backfill” links producing gas fields in Equatorial Guinea to onshore LNG facilities. It is widely considered the first phase of the Gas Megahub vision, which aims to turn the island of Bioko into a mega-center of gas processing.

(With Inputs from APO)