The gas agenda amplified by recent electricity projects carried out by independents

13 Avril 2023

LIBREVILLE, April 13 (Infosplusgabon) – Demonstrating the important role that natural gas continues to play in the electrification of Africa, the Anglo-Swiss oil and gas heavyweight Perenco and representatives of the Gabonese government have signed a memorandum innovative agreement for the construction of a gas-fired power station to electrify the remote southern provinces of the country. This project is part of larger plans to exploit the country’s untapped potential as a natural gas producer and confirms Perenco’s central role in the region’s ambitions.

In the presence of Vincent de Paul Massassa, Gabonese Minister of Oil and Gas, the Memorandum of Understanding was signed by Adrien Broche, Managing Director of Perenco for Gabon, and Joseph Diboma, Development Director of Gabon Power Company (GPC) , in Libreville, the capital of the country. Under the terms of the memorandum of understanding, the two companies will co-develop a peaking power plant in Mayumba, on the south coast, to supply the southern provinces of Nyanga and Ngounié with electricity produced from natural gas. , which will be extracted from Perenco’s nearby offshore oil and associated gas fields.

The initial phase of the project will see an investment of 24 billion CFA francs from Perenco to build the gas compression and transport infrastructure by subsea pipeline to the site, where GPC has committed to invest 50 billions of additional CFA francs in the power plant itself. This should provide an installed capacity of around 20 MW, or 180 GWh per year. This will largely meet the 150 MW that the government’s Acceleration and Transformation Plan estimates is needed to meet the southern country’s energy needs. To help realize this potential, GPC will build a 90 kV high voltage line, a 20 KV low voltage line and a lifting station to supply the main towns of Tchibanga in Nyanga and Mouila in Ngounié. The second phase of the project provides for a 50 MW extension to supply the town of Lambaréné in the province of Moyen Ogooué. The first phase should make it possible to electrify 80,000 households and create some 450 jobs.

The pattern for this development is similar to projects further north, in which gas from Perenco’s offshore Mbia field is tapped to supply the country’s two main cities, the capital Libreville and Gabon’s main offshore oil and gas hub, Port Kind. In addition to the considerable economic benefits it provides, this project demonstrates the role that natural gas and independent oil and gas companies are called upon to play in the electrification, industrialization and growth of Gabon and the whole of Gabon. African economy. The project itself is just the latest demonstration of Perenco’s longstanding commitment to Gabon’s energy sector, where the company’s talent for revitalizing mature fields is particularly relevant in the local environment, where oil production has steadily declined since its peak in 1996. The company entered Gabon in 1992 with the acquisition of offshore oil fields off Port-Gentil and has since acquired other assets both on and offshore. The exploitation of these assets has been accompanied by additional investments by Perenco in pipelines and floating storage and offloading vessels. The company’s contribution to infrastructure culminated in February this year when Perenco announced a final investment decision for the creation of the Cap de Lopez liquefied natural gas (LNG) facility in a value of 1 billion dollars, which will have a capacity of 700,000 tonnes of LNG and whose production should start in 2026.

These developments reflect a much broader ambition set out in the government’s Gas Master Plan, which aims to diversify Gabon’s energy mix by harnessing the country’s so far untapped natural gas potential. Gabon has natural gas reserves estimated at 1.2 trillion cubic feet, much of it located offshore in the form of gas associated with the country’s oil fields. Gas production peaked in 2021 at 70 billion cubic feet, but this figure is expected to increase as the government seeks to eliminate flaring and exploit its gas resources to electrify local homes, fight climate change and increase revenue. of export by meeting the growing demand for LNG on rich European markets.

As Gabon ushers in a new era of economic growth powered by natural gas, the country is poised to sign new deals and kick-start its development at the continent’s premier event for the oil and gas sector, Africa Oil and Gas Week. Energy (AEW) 2023 – which is organized by the African Energy Chamber (the voice of the African energy sector) and takes place from 16-20 October in Cape Town. At AEW 2022, the country played an important role in investment, with a Gabonese delegation led by HE Minister Massassa engaging with investors, leading discussions and connecting E&P players to opportunities Gabonese. This year, this trend will only continue as the opportunities presented by the Gas Master Plan attract new financiers and players in the emerging gas market.

FIN/INFOSPLUSGABON/MOP/GABON2023

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