Equatorial Guinea eyes Europe as new market for Fortuna FLNG

As Asia receives more of its liquefied natural gas (LNG) supplies from new projects in Australia and the US and the competition rises, Equatorial Guinea sets its eyes on European buyers as the next key market for itsFortuna Floating Liquefied Natural Gas (FLNG) project.

Although the small country along the coast of West Africa still looks to Asia as a key customer for its 2.2 million tons per year (tpy) LNG production, Europe is now becoming a more attractive market for the future of its LNG industry than Asia, according to the country’s energy minister,Obiang Lima.

European off takers who are trying to wean off Russian gas offer a great benefit for LNG producers such as Equatorial Guinea as they can also take advantage of the short tanker routes for the super-chilled fuel from Africa.

According to Lima, they are already coming to the final phases of designating the buyers, adding that one of the key criteria of the project that has not been decided yet is the fiscal terms that the government would provide.

The final investment decision on the project will be made by the end of this year, with completion set for 2019, he said.

“The biggest advantage that we have in floating rather than onshore (projects) is that a lot of the development is not done in-country,” Lima said.

Also, the country’s plans for a 2.2 million cu m oil terminal have been tweaked as the country has limited means to fund such a project, Lima said. Private investors who will partner with the government on the initiative are now being sought out.

Major trading houses like Gunvor and Socar, and French oil major Total have indicated interest in participating in the storage and shipping terminal, he said.Vopak, which was originally planned to be the terminal’s operator, will no longer be involved in the project, Lima added.