Gas Agreement Between Cameroon-CMLNG S.A : Minister Presents Status Report

Government, through the Ministry of Water Resources and Energy said a gas agreement was signed on June 8, 2018 with CMLNG S.A, a subsidiary of the British company New Age, for a renewable period of 25 years for the installation and operation of a floating natural gas liquefaction plant in the Etinde Block, South West Region of Cameroon. It is against this backdrop that Hon. Findi sought to find out the status and implementation pace of the agreement from the Minister of Water Resources and Energy, Gaston Eloundou Essomba. 
Presenting the status report at the National Assembly on June 16, 2023 during a plenary sitting chaired by the Senior Deputy Speaker, Hilarion Etong, the Minister said the agreement envisaged the construction of a floating plant that would transform part of the natural gas into liquefied natural gas and another part into domestic gas, with a view to making them available on the local market. “The implementation of this major project was conditional on the development of the Etinde field by the Contracting Group made up of New Age, Lukoil and Euroil. Unfortunately, the three wells drilled during the period from 2018 to 2021 showed a low natural gas production profile. On the other hand, a large exploitable condensate deposit was discovered. Thus, out of a projected production of 3.1 trillion cubic feet, the three wells only revealed the presence of 1 trillion cubic feet of natural gas; production which, according to CMLNG S.A, is insufficient to develop the project to install and operate a floating plant, given the significant investment it requires,” the Minister said. He further explained that he was contacted by the Managing Director of New Age on June 7, 2022 who informed him about the signing of a contract for the sale to PERENCO-SNH of its companies holding the interest in the association Etinde. The finalisation of the sale is said to be in progress and it is only at its end that government will know the fate that PERENCO-SNH reserves for the project and the signed agreement. Minister Gaston Eloundou Essomba added that government’s option at the...