CMLNG, a wholly owned subsidiary of New Age LNG Limited (New Age LNG) is pleased to announce that it has signed a gas convention agreement (GCA) with the Government of Cameroon, regarding its Floating Liquefied Natural Gas (FLNG) project in the Republic of Cameroon. The agreement, which enshrines the fiscal terms of the project, was signed at a ceremony held today in Yaounde, in the presence of the Minister of Water Resources and Energy, His Excellency Eloundou Essomba Gaston.
The project company, CMLNG, will utilise a newly-built FLNG production vessel to process gas from the Etinde production sharing licence. As a result of a competitive tendering process undertaken during 2016, a contract has been awarded to a consortium led by SBM Offshore, in conjunction with JGC Corporation 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.
Financial benefits to Cameroon
Over the 25 years, the FLNG project will spend a total in excess of $1.5 billion locally. The overall gas project is expected to generate significant revenues for the Government. The development will also include a large onshore marine support base and the creation of over 350 skilled local jobs and a further 3,000 indirect jobs to support service companies and in the wider community.
To develop the required skills sought by the project, CMLNG will be running comprehensive training and graduate placement programmes. A dedicated training centre is also planned for development in Douala.
Steve Lowden, Chairman of New Age LNG Limited, said: “I am delighted that New Age LNG and the Cameroon Government 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."