100 million pipeline contract awarded to SaipemEquatorial Guinea’s Ministry of Mines and Hydrocarbons has approved the construction of a 70-km subsea pipeline linking the Alen Unit with the Punta Europa petrochemical hub. The $90-100 million contract has been awarded to Italian contractor Saipem and gas deliveries from the project, operated by Noble Energy, are expected to begin in early 2021.

The pipeline will have capacity for 950 million cubic feet of gas a day and will serve offshore gas fields as Equatorial Guinea looks to extend the life of its liquefied natural gas (LNG) production assets.  

First gas is expected to be delivered during the first quarter of 2021.

 “We anticipate that this contract, which is being approved exceptionally under the given circumstances, will contribute immensely to improving the performance of local businesses and the creation of employment,” Gabriel Mbaga Obiang Lima,  Equatorial Guinea’s Minister of Mines and Hydrocarbons, said.

Equatorial Guinea, a small West African member of the Organisation of the Petroleum Exporting Countries, derives more than 90% of its foreign revenue from oil and gas.

The pipeline forms part of plans to link various offshore gas fields to onshore LNG facilities and turn the island of Bioko into a gas processing hub.

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