Cameroon - The development of natural gas

Cameroon has abundant natural gas reserves, making this potential a long-term energy source for the country. Natural gas production is expected to increase as early as 2023.

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In 2021, the floating natural gas liquefaction plant operated by the SNH/Perenco/Golar consortium, off the seaside resort of Kribi, increased the volume of LNG exported by 34% compared to 2020. During the same period, the Bipaga natural gas transformation unit into commercial butane gas, still off Kribi, also increased its production, from 22,000 metric tons (MT) to 28,000 MT.

This growth in LNG exports to Cameroon comes as Golar announces an increase in production capacity starting in 2022. Production from the floating Hilli Episseyo vessel will increase from 1.2 million tonnes per year to 1.4 million tonnes starting in 2022. The additional gas supply is expected to come from the Sanaga Sud field.

In 2018, Perenco and SNH decided to develop the LNG (Liquefied Natural Gas) market with the FLNG Hilli Episeyo (Floating LNG), the world's first floating liquefaction plant, installed off the coast of Kribi. Sanaga was the first offshore gas field to be developed in Cameroon to supply the Kribi power plant and meet the country's growing electricity demand. Production from the two offshore wells is then exported to a processing plant, where the gas is processed to reach the required 216 MW standard.

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In 2015, Perenco and SNH signed a 10-year gas agreement with the Norwegian company Golar LNG. The aim of this agreement is to develop Sanaga's remaining LPG (Liquefied Petroleum Gas) reserves for the domestic market and LNG (Liquefied Natural Gas) for export. This development was made possible by the FLNG Hilli Episeyo, the first floating liquefaction plant, the result of a conversion of an LNG carrier that will allow Perenco and SNH to produce 1,200,000 tonnes of LNG annually for export, 26,000 tonnes of domestic gas for Cameroonian households, thus reducing the country's imports by half, and 3,300 bopd of stabilized condensates exported to the Ebome field, giving a second life to the tanker "La Lobe."

Perenco and SNH, which operate upstream, intend to drill and evaluate two or three additional natural gas wells and upgrade upstream facilities in 2022 to support further production increases as early as 2023.

A 6,500 km cross-border pipeline by 2030

At the 2nd edition of the Central Africa Business Energy Forum (CABEF) in Douala, held from September 8 to 9, 2022, a consensus emerged on the construction of a multinational infrastructure to enable a better supply of oil, gas and petroleum products to the countries of the continent, members of CABEF and APPO. The project consists of the construction of a pipeline linking the countries of the sub-region through the establishment of three multinational oil and gas pipeline systems of approximately 6,500 kilometers, storage depots, liquefied natural gas terminals, refineries and gas-fired power plants linking 11 countries including Cameroon. This project, expected to be fully operational from 2030, will open a new era of intra-African energy trade and security.