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Fortuna FLNG looking to Europe as its next key market

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LNG Industry,

According to Reuters, Equatorial Guinea is discussing pricing terms with possible offtakers from its 2.2 million tpy Fortuna floating LNG (FLNG) project, with Europe being eyed as its next key market.

Obiang Lima, the Equatorial Guinea energy minister, reportedly said that, whilst Asia continues to be a key customer, there is also tough competition from the US and Australia. European buyers, meanwhile, are trying to reduce their dependence on Russian gas, and so could represent a great opportunity for LNG from Equatorial Guinea.

Reportedly, the small African nation’s government is aiming for a break-even cost of approximately US$6/million Btu – US$7/million Btu for gas sold to Europe from the Fortuna FLNG project. Currently, Reuters reports that Asian LNG prices are approximately US$5.50/million Btu, and British NBP natural gas spot trading prices are at approximately US$4.20/million Btu.

Lima said: “We are coming to the final phases of designating our offtakers ... (but) one of the key criteria of this project that has not been decided yet is the fiscal terms that the government would provide to the project."

Lima also reportedly added that a final investment decision (FID) will be made before the end of 2016, with completion scheduled for 2019.

Edited from various sources by David Rowlands

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