Equatorial+Guinea+Natural+Gas

=China Unlikely to Invest Heavily in Equatorial Guinea Natural Gas=

Executive Summary:
In the next five years China is unlikely to make major investments in Equatorial Guinea's natural gas industry. Although Equatorial Guinea is a net exporter of natural gas, most of these exports are to Japan. Equatorial Guinea's natural gas sector is increasing, but natural gas is becoming more competitive with new discoveries of natural gas in other regions of Sub-Saharan Africa.

Discussion:
Equatorial Guinea is a net exporter of natural gas with dry natural gas production increasing from 1 billion cubic feet in 2001 to 243 in 2011. Domestic consumption grew in Equatorial Guinea too, from 1 billion cubic feet to 57 billion cubic feet.As of Jan. 2013, Equatorial Guinea has proved natural gas reserves of 1.3 trillion cubic feet, the tenth-largest in the region. Equatorial Guinea has the resources to increase dry natural gas production, but much of its associated gas is currently flared or re-injected. There have been a number of natural gas discoveries in Ophir Energy's Fortuna Complex that may boost production in the future.According to FACTS Global Energy, Equatorial Guinea exported around 174 billion cubic feet of liquified natural gas in 2012, with 77 percent sent to Japan and the rest to South Korea, Taiwan, Chile, and Greece.

Most of Equatorial Guinea's dry natural gas production is exported as liquified natural gas through the country's only liquified natural gas plant, the Punta Europa, located on Bioka Island, which came online in 2007. This plant has only one train and is fed with natural gas produced in mainly in the Alba field. The country plans to have an operating second train by 2016, but plans have been delayed because of feed gas availability.



** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.
 * Analyst:** RoseAnna Wright