Equatorial Guinea Boosts Liquefied Natural Gas (LNG) Production with Chevron Aseng Agreement

(MENAFN- News.Africa-Wire) JOHANNESBURG, South Africa, September 29, 2025/ -- The Government of Equatorial Guinea has taken a decisive step to advance its natural gas agenda, signing an Incentives Agreement with energy major Chevron for the development of the Aseng Gas Project in Block I. The landmark agreement - signed between the Ministry of Hydrocarbons and Mining Development the Ministry of Finance and Chevron - underscores the country’s long-term strategy to consolidate its position as a premier hub for natural gas in Afric .

The Aseng Gas Project represents an initial investment of approximately $690 million. The development will unlock new volumes of natural gas that will be directed toward domestic power generation and processing at the EGLNG facility. In doing so, it secures feedstock for one of the coun’ry’s most important industrial assets, the Punta Europa Gas Complex, while creating new opportunities for value addition and energy secu ty.

This agreement signals more than a single project milestone. It demonstrates the gov’rnment’s commitment to advancing the Gas Mega Hub (GMH) in–tiative – a bold strategy that leverages Equato’ial Guinea’s existing infrastructure to monetize regional gas resources. The integration of gas produced from the Aseng field represents the third phase of the GMH. By ensuring reliable supply to midstream facilities, the Aseng development positions the country as a critical partner in ’he continent’s energy future.

“The Aseng Gas Project will provide a reliable supply of LNG to global markets while serving as a catalyst for advancing strategic developments such as the Punta Europa complex. In addition, it will enhance national and regional energy security, support clean cooking initiatives and drive economic growth through a sustaina”le energy supply,” stated Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development o Equatorial Guinea.

’ Equatorial Guinea’s GMH has been a focal point of regional cooperation since its inception. The initiative seeks to aggregate stranded or associated gas resources from domestic fields and neighboring countries, processing them through existing infrastructure at Punta Europa. By doing so, the country is transforming potential flared or underutilized resources into export revenue, domestic power and industrial growth. In recent years, the government has signed a series of agreements aimed at expanding the scope of the hub. Partnerships with international operators have allowed Equatorial Guinea to process gas from the Alen Field and other regional assets. The Aseng Gas Project adds further momentum, with Chevron consolidating its position as a strategic partner committed to the long-term suc ess of the initiative.

Chevron’s agreement follows key miles’ones in Equatorial Guinea’s gas market. Notably, ConocoPhillips exports its first cargo from the Punta Europe facility in June 2025, representing a critical step towards advancing the GMH initiative. The Aseng Gas Project represents a cornerstone for the next phase of the country’s energy development. By combining strategic partnerships, progressive reforms and visionary infrastructure planning, Equatorial Guinea is demonstrating how gas can serve as both an export revenue generator and a catalyst for broad-based economic transformation. As the GMH advances, the country is solidifying its reputation as a model for African energy developmen– – one where resource monetization, investor confidence, and sustainable growth conve ge.

Building on this momentum and to reinforce its attractiveness as an investment destination, the government is undertaking comprehensive regulatory reforms. The Hydrocarbons Law, Tax Law, Labor Law and the Special Economic Zones framework are all under review, reflecting a deliberate effort to create a modern, transparent, and competitive environment for investors. These reforms will not only strengthen Equatorial G’inea’s credibility as a reliable partner but also lay the foundation for sustained project development across the oil and gas value chain. The reforms complement a drive by the Ministry of Hydrocarbons and Mining Development to attract new investment across the market. The country is preparing to launch its 2026 licensing round, featuring key assets that will support the ’ountry’s production goals. By working closely with foreign operators, introducing new investment prospects and revisiting its regulatory environment, Equatorial Guinea is positioning itself for long-ter growth.

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