Gabon signs Concession Agreement for new 120 MW gas-to-power plant

Yesterday, the Gabon Power Company (GPC) signed a landmark Concession Agreement with Wärtsilä for the development, supply, construction, operation and maintenance of a new 120 MW gas-to-power project in Owendo, next to the capital city of Libreville.

Wärtsilä will jointly lead the project with the GPC, a subsidiary of Gabon’s sovereign wealth fund FGIS via a new joint-venture called Orinko S.A.

Under the agreement signed yesterday, Wärtsilä will build the plant under a full Engineering, Procurement, and Construction (EPC) contract and will then operate and maintain it under a long-term 15-year Operation and Maintenance (O&M) agreement. The EPC contract and the O&M agreement will be signed in 2022 with Orinko S.A.

When commissioned, the plant will supply electricity to Société d’Energie et d’Eau du Gabon (SEEG), the Gabonese utility, under a 15-year Power Purchase Agreement.

Gabon is currently looking at monetizing its gas across several industries, including power generation. The country already runs several gas-to-power facilities, including the 128 MW Owendo plant, the 105 Port Gentil plant and the 75 MW Alenakiri plant. Most plants are supplied in domestic gas by Perenco. The independent delivers gas on land and at sea through a 450km network of high-pressure pipelines and currently ensure the transport and delivery of 50 MMscfd of gas to the power plants of Port-Gentil and Libreville.

The new gas-to-power plant with Wärtsilä also falls within Gabon’s ambition to increase power generation capacity across the country. In July this year, the GPC and Meridiam had already successfully reached financial close for the 35 MW Kinguélé Aval hydropower plant.  

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Eni puts Cabaça North on stream on Block 15/06 offshore Angola

Following Cuica in July this year, Eni has now achieved first oil from Cabaça North on Block 15/06 offshore Angola. Both fields are tied back to the Olombendo FPSO commissioned back in 2017 to initially develop the Cabaça Southeast and Cabaça Central UM8 fields on the license’s East hub. While Cabaça North was always going to be part of the East hub’s second phase of development, several additional fields were discovered by Eni over the past three years and are now being successfully tied-back under the company’s “infrastructure-led” exploration strategy (ILX). Source: MinFin Angola Ndungu will be the next discovery to achieve first oil within the coming months but tied back to the N’Goma FPSO on the block’s West hub. Meanwhile, Cabaça North will help in maintain output from Block 15/06 where production averaged only 100,000 bopd in H1 2021 compared to a combined capacity of 180,000 bopd across both FPSO vessels. Block 15/06 remains a very lucrative asset for Eni and Sonangol with strong upside potential. As of December 2020, 142.2m barrels had been produced from the West Hub (N’Goma FPSO) with remaining reserves estimated at 174m barrels, while 85.7m barrels had been produced from the East Hub (Armada Olombendo FPSO) where remaining reserves were estimated at 159.8m barrels. As part of its ongoing Partial Divestment Process, Sonangol is currently negotiating the sale of up to 10% of its interest in Block 15/06. Angola is currently sub-Saharan Africa’s most dynamic deep-water subsea market with majors such as TotalEnergies, Eni and BP involved in several subsea tiebacks and infill projects to maintain and increase output from existing production hubs. The country continues to be faced with declining output despite recent increase in production in July and August. Angola has produced an average of 1.143m barrels of oil per day (bopd) between January and August this year according to the ANPG. Its OPEC quota for September is set at 1.348m bopd. Full details on Block 15/06 are available in the “Projects” section within your Hawilti+ research terminal. More information on the Angolan oil & gas market is also available in Hawilti’s latest H1 2021 report on Angola.

Angola lays first stone for new Barra do Dande Ocean Terminal

Yesterday, Sonangol has officially laid the foundation stone for its landmark Barra do Dande Ocean Terminal (Terminal Oceânico da Barra de Dande, TOBD) in the Bengo Province north of Luanda. The infrastructure project has been in the making since 2013 but delayed several times by years of recession since 2016. It represents a massive step forward for Angola’s downstream sector and aims at turning Barra do Dande into the country’s main platform for the receiving, storage and distribution of petroleum products. Its official launch follows the award of key contracts this month to its EPCC contractor, the Brazilian Odebrecht, along with the supervision contract to DAR Angola and the Environmental Impact Study to SOAPRO. The terminal will be developed in phases and at a cost of $500m (Kz. 317 bn), ultimately targeting the construction and installation of 29 storage tanks connected to maritime infrastructure such as breakwater, berths and unloading lines. Its phase 1 will include 16 tanks with a combined storage capacity of 582,000 m3 of petroleum derivatives including diesel (320,000 m3), gasoline (160,000 m3) and LPG (102,000 m3) reserved for the domestic market, and will support 3,500 jobs during its construction phase. It involves three different units: the first one covers the development of the 16 storage tanks while the second one involves the construction of a petroleum products and LPG pipeline and the third one the construction of two berths with a total capacity of 150,000 DWT. A second phase will add an additional 13 tanks to bring total storage capacity to 782,500 m3 and enable the export of surplus petroleum products. The project fully integrates with Angola’s vision to expand downstream infrastructure. The country is currently expanding its Luanda Refinery while building three new refining facilities with the private sector at Cabinda, Soyo and Lobito. Once commissioned, these will be producing a surplus of petroleum products that can be exported by pipeline or ship to regional and global markets. Upon completion of those brownfield and greenfield projects, Angola will have multiplied its refining capacity by x9 and will be one of sub-Saharan Africa’s biggest refining hubs.