CMLNG, a wholly owned subsidiary of New Age LNG Ltd. has announced that it has signed a gas convention agreement (GCA) with the government of Cameroon, regarding its FLNG project in the Republic of Cameroon.
The agreement, which enshrines the fiscal terms of the project, was signed at a ceremony held in Yaounde on 8 June.
The project company, CMLNG, will use a newly-built FLNG production vessel to process gas from the Etinde production sharing licence. As a result of a competitive tendering process undertaken in 2016, a contract has been awarded to a consortium led by SBM Offshore, in partnership with JGC Corp. and Chinese partners, to develop the FLNG project.
In addition to the production vessel, it is anticipated that a substantial onshore administration and logistical support base will be developed in Limbe or Douala that will include administration offices, warehousing, workshops and other support services.
The FLNG project will be developed in conjunction with the upstream Etinde development which will include gas and gas liquid production facilities supplying LNG and other gas customers.
It is expected that the project will spend a total in excess of US$1.5 billion locally over the next 25 years. The overall gas project is expected to generate significant revenues for the government of Cameroon. The development will also include a large onshore marine support base and the creation of over 350 skilled local jobs and a further 3000 indirect jobs to support service companies and in the wider community.
To develop the required skills, CMLNG will be running training and graduate placement programmes. A dedicated training centre is also planned for development in Douala.
Steve Lowden, Chairman of New AGE LNG, said:
“I am delighted that New Age LNG and the Cameroon Govermnent have agreed fiscal terms to launch Cameroon’s largest gas project. The outlook for LNG markets is structurally attractive through the first half of the next decade when our project will be coming on stream. As well as providing a major source of local employment, the project is expected to generate significant tax revenue annually, becoming a material contributor to the local economy. I look forward to working closely with the Cameroon Government and our other partners to successfully develop this important project.”
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12062018/cmlng-signs-gas-convention-agreement-with-cameroon/