Agreements in place for Alen gas development offshore Equatorial Guinea
Noble Energy and its partners have approved the $330-million Alen natural gas development in blocks O and I offshore Equatorial Guinea.
Production, due to start during the first half of 2021 at rates of between 200 and 300 MMcf/d, will be processed through the Alba LPG plant and the EG LNG complex at Punta Europa, Bioko Island.
J. Keith Elliott, Noble Energy’s senior vice president Offshore, said: “The Alen development is the first step towards creating an offshore natural gas hub in Equatorial Guinea, which will open the potential for future monetization of additional discovered resources through existing infrastructure.
“Noble Energy has discovered 3 tcf of gross natural gas resources in the Douala basin, which positions us well for LNG sales exposure over the coming decade.”
Initially theAlen field started operations in 2013 as a condensate production and natural gas recycling project. Until now the gas has been re-injected into the reservoir to enhance liquids recovery. Produced condensate will continue to be transported to the Aseng field production, storage, and offloading vessel for export.
The Alen gas monetization project will exploit three existing high-capacity production wells on the platform, with minor modifications to deliver sales gas to the Alba Plant and EG LNG facilities via a new 70-km (43-mi), 24-in. subsea pipeline capable of handling 950 MMcf/d.
Alen’s wet gas stream will be tolled through the Alba Plant for additional liquids recovery, with the dry gas converted into LNG at the EG LNG facility. Noble expects Alen gas sales to rise slightly as more capacity becomes available in the EG LNG plant due to declining Alba field production.
Noble Energy and partners will maintain ownership of the hydrocarbons through the processing facilities, and the company will work on offtake agreements to sell the LNG to global markets. It assesses Alen’s total recoverable resources at around 600 bcfe.
The company has a 28% interest in the Marathon Oil-operated Alba Plant. Marathon also operates EG LNG.
The Alen Gas offshore hub is the first step of the government’s plan to position Equatorial Guinea as a Gas Mega Hub, with gas from other projects directed to Punta Europa.
“We will do more deals on other gas assets in the country that must be developed. Development of the Gas Mega Hub will ensure a thriving Equatorial Guinea gas industry into the future,” said Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima.
“Monetization of the Alen Unit gas could deliver around $1.5-2 billion in additional state revenues over the life of the project, including revenues from Alen Unit and respective Punta Europa plants… I am happy this project will support employment of Equatoguineans employed by the Punta Europa plants and Alen platform, which currently stands at approximately 1,400 employees in total,” added the Minister.