Perenco reaches investment decision for African LNG production unit

(WO) — Perenco has reached Final Investment Decision (FID) for the construction of a Liquefied Natural Gas (LNG) production unit at the Cap Lopez oil Terminal in Gabon.

The news follows the official presentation of the project in Libreville to the Minister of Oil and Gas, and the subsequent technical approval by the Gabonese authorities in December 2022.  

The LNG production unit, which involves an investment of more than $1 billion and a three-year construction period, will see the transformation of the Cap Lopez into both an oil and gas terminal.

As soon as 2026, Perenco’s investment will facilitate Gabon becoming self-sufficient in butane gas (LPG) and an exporter of LNG, with annual production targets of 20,000 tons and 700,000 tons of butane gas and LNG respectively. These volumes will come in addition to the 15,000 tons per year of LPG that will be produced by Perenco in Gabon from its new plant that will enter in production this year.

To ensure operational continuity throughout the construction phase of the terminal, a VLCC vessel has been mobilized and connected to the Cap Lopez facilities. The tanker has a capacity of 2 MMbbl and has already carried out its first crude oil withdrawals and will be used to store all production coming into the Terminal.   

Commenting on today’s announcement, Perenco’s Group General Manager, Benoît de la Fouchardière, said, “FID for a new LNG production unit in Gabon is further evidence of Perenco’s leading gas strategy in Africa. It also marks an important milestone for Perenco’s partnership with Gabon, a country where we have been operating for thirty years. We are pleased to be investing to help meet Gabon’s future energy demands, supporting the country in reducing its emissions, and delivering a project that will also create hundreds of direct and indirect employment opportunities.”