LONDON, Feb. 19 -- Equatorial Guinea LNG (EG LNG) is looking to use gas from the Zafiro oil field, operated by ExxonMobil Corp., as possible feed gas for its liquefaction plant, said Steve Ollerearnshaw, EG LNG managing director, at the International Petroleum Week conference in London Feb. 16.
Currently 150 MMcfd of gas from Zafiro field is flared. EG LNG is in discussions with ExxonMobil to see whether it would be feasible to bring gas for its proposed second LNG train, Ollerearnshaw said. "It would need a pipeline and compression to make it work," he added. Zafiro, which produces more than 270,000 b/d, is the biggest oil field in Equatorial Guinea.
EG LNG has contracted Bechtel Corp. to investigate the feasibility of adding a second 4.4 million tonne/year train. The work is scheduled for completion by the end of the first quarter, and EG LNG shareholders are expected to make a final investment decision by late 2007 or early 2008.
Ollerearnshaw said discussions are under way among Nigeria, Cameroon, and Equatorial Guinea to explore providing gas to EG LNG.
"We believe there is a very sound economic basis for Train 2 at EG LNG," he added, "and we see a long-term potential for up to 20 million tonnes in Equatorial Guinea."
EG LNG will join the club of Atlantic Basin LNG suppliers later, with first LNG production from its initial 3.4 million tonnes/year train due in the summer. Gas for the plant will come from Alba field. BG Group is expected to deliver the volumes to the Lake Charles regasification terminal in the US, but Ollerearnshaw said that BG Group has destination flexibility in its contract.
EG LNG is situated on Bioko Island in Equatorial Guinea (OGJ, Sept. 4, 2006, Newsletter).
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