Gulf Oil and Gas accountACCOUNT

BG & Marathon Sign a LOU for Liquefied Natural Gas Supply

Source: 5/13/2003, Location: Africa

BG Gas Marketing Ltd (BGML), a subsidiary of BG Group plc, announced that it has signed a Letter of Understanding (LoU) with Marathon Offshore Alpha Limited, a wholly-owned subsidiary of Marathon Oil Corporation, for long-term Liquefied Natural Gas (LNG) supply to BGML.

The LoU envisages the supply of 3.4 million tonnes per annum (mtpa) for a period of 17 years beginning in 2007 from a proposed LNG project to be developed by Marathon and its partners on Bioko Island, Equatorial Guinea. Feedstock gas for the project would be sourced primarily from the Marathon-operated offshore Alba Field, in which it has a 65 per cent interest. Approval of the LNG project by the Government of Equatorial Guinea is pending. A definitive LNG Sale and Purchase Agreement is expected to be concluded by year-end 2003.

Frank Chapman, Chief Executive, BG Group plc, said: “We are delighted to announce significant progress in our rapidly developing LNG strategy. The Lake Charles import terminal in Louisiana is the principal market for this LNG but this agreement provides total flexibility on the destination of the gas, enabling BG Group to take advantage of prevailing market conditions at import destinations around the world. This agreement represents a further major step in building up our portfolio of long-term competitively priced LNG.”

Commenting on the announcement, Clarence P. Cazalot, Jr., Marathon President and CEO, said: “This agreement with BG Group marks the achievement of another important milestone in the commercialisation of the significant natural gas reserves in Equatorial Guinea. LNG from West Africa promises to play an increasingly important role in meeting the growing energy demands of the United States and we are pleased to be working with all our LNG project partners to help meet this need for clean, efficient energy. This project is one more example of how Marathon is executing its integrated gas strategy, which is aimed at linking the world's stranded natural gas resources with key demand centres for this premium energy source.”

Domingo Mba Esono, the National Director of GEPetrol, commented: “GEPetrol is very pleased to be actively participating in this important development for Equatorial Guinea. This LNG project demonstrates international investor confidence in the political stability and economic progress of our country. GEPetrol has chosen to be an active partner and investor in the LNG project because we are confident it will bring commercial and social benefits to Equatorial Guinea.”

Marathon signed the agreement on behalf of its LNG project partner, GEPetrol, Equatorial Guinea's State owned oil company.

LNG Processing News in Equatorial Guinea >>

Egypt >>  3/14/2019 - Eni announces a new gas discovery under evaluation in the Nour exploration prospect located in the Nour North Sinai Concession, in the Eastern Egyptia...
Algeria >>  3/13/2019 - Petrofac has been awarded a contract worth around US$1 billion with Groupment Isarene, the joint operating group set up by Sonatrach, Petroceltic and ...

Morocco >>  3/13/2019 - Qatar Petroleum entered into an agreement with Eni to acquire a 30% participating interest in the Tarfaya Shallow Exploration Permit, a series of 12 n...
Mauritania >>  3/11/2019 - McDermott International, Inc. and Baker Hughes, a GE company have announced that they have been awarded subsea umbilicals, risers and flowlines (SURF)...

Mauritania >>  3/1/2019 - TechnipFMC has been awarded by BP a large contract for the engineering, procurement, construction, installation and commissioning (EPCIC) of the float...
Nigeria >>  1/7/2019 - Penspen, a leading global provider of engineering and project management services to the energy industry, is pleased to announce that it has been awar...

Related Categories: Deodorization system  Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Related Articles: Gas dehydration  Gas sweetening  Gas Treating  General  GTL Processing  LNG Processing  LPG Domestic use  LPG Odorless  Packing  Phase Separation  Scrubbers 

Equatorial Guinea Oil & Gas 1 >>  2 |

Oil & Gas Projects in Equatorial Guinea >>

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.