Negotiations have been opened by SONAGAS with off-takers and marketing of its Liquefied Petroleum Gas (LPG) production stake to international buyers will start from 1 January 2016. SONAGAS, with the government of Equatorial Guinea, is a 20% shareholder, with Marathon Oil and Noble Energy each holding a 40% stake at the Alba plant, situated at the Punta Europa gas complex.
Boosting local content in the Equatorial Guinea LPG sector is one of the aims of the SONAGAS share sale, according to H.E Gabriel Mbaga Obiang Lima, Minister of Mines, Industry and Energy.
“SONAGAS marketing its share of LPG fulfills one of the major objectives envisaged by the state in creating the company a decade ago, that of a national gas company with capacity across the spectrum of gas activities,” he said. “SONAGAS is evolving to take on more of the gas business, not only as a shareholder at Punta Europa, but throughout the entire value chain.”
The Alba plant commenced operations in 1991 and was upgraded in 2003-2005. It produces 8,000 barrels per day of butane, 14,000 barrels per day of propane, and 6,000 barrels per day of condensed gas. SONAGAS was established in 2005 to develop gas projects on behalf of the government of Equatorial Guinea.
Sonagas (Sociedad Nacional de Gas de Guinea Ecuatorial) is the Equatorial Guinean national natural gas company. It was formed in 2005. It operates in conjunction with GEPetrol, the nation’s principal petroleum company, and EG LNG, the nation’s liquid natural gas company, to manage the nation’s fossil fuel resources.