Gunvor Group has been nominated as the preferred LNG Buyer for offtake from the Fortuna FLNG project by the Equatorial Guinea authorities, Ophir Energy the operator and OneLNG, its investment partner.
Ophir Energy says that the commodity buyer is committed to take the full contract capacity of the Gandria FLNG vessel of 2.2 MMTPA which will be purchased on a Brent-linked, Free on Board (“FOB”) basis for a 10 year term.
“All parties have agreed the principal commercial terms subject to finalising a Sale and Purchase Agreement (“SPA”) for the offtake ahead of the Final Investment Decision (“FID”) on the Fortuna FLNG project”, Ophir enthusiastically declares in a release.
The contract structure allows flexibility for up to 1.1MMTPA of the Fortuna capacity to be marketed on an alternate basis. Consequently the agreement gives the Fortuna partners alongside the State of Equatorial Guinea, the potential to sell volumes to higher priced gas markets in Africa and beyond, whilst retaining a share in the profits of such onward marketing.
“With the identification of a preferred LNG Buyer now achieved, the last significant milestone prior to the FID of the Fortuna FLNG project is the completion of the project funding, with FID remaining on track for 2017”, Ophir says.
Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for the Republic of Equatorial Guinea, commented: “The selection of Gunvor sets a landmark moment in the development of the Fortuna Project. The partnership with Gunvor also paves the way for the government’s objective to deliver important projects that monetize our gas, promotes local content and brings world-class petroleum technology to Equatorial Guinea.
The Fortuna Project will target becoming the first choice supplier of LNG for the LNG to Africa initiative , furthering Equatorial Guinea’s leadership position in Africa as an LNG exporter.”