Alen Backfill Project Paves Way for New LNG Players in Equatorial Guinea
New playersare expected to lift liquefied natural gas (LNG) cargoes in Equatorial Guinea, following the flow of first gas from the country’s flagship Alen backfill project in February.
Operated by Noble Energy EG Ltd., a Chevron subsidiary, the Alen gas monetization project transports gas from the Chevron-operated Alen field to onshore gas-processing facilities at Punta Europa for the production of LNG, Liquefied Petroleum Gas and gas condensate, in a bid to offset declining output from the Alba field and associated LNG export plant.
Under the project’s new tolling structure, current shareholders in the Alen field, which comprises offshore Blocks O and I, will be able to directly lift LNG in proportion to their percentage ownership, drawing new entrants to the market and increased LNG revenues.In turn, Shell will no longer serve as the sole off-taker of LNG cargoes in Equatorial Guinea, which it had been since 2015.
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