Cameroon FLNG future at stake after SNH pulls out

Author: Josie Shillito

2017/01/25

Cameroon state energy company Societe Nationale de Hydrocarbures (SNH) has pulled out of the Cameroon floating LNG project, according to a source familiar with the project.

An LNG trading source and two analysts said that exports from the project would be delayed.

“I’m not entirely sure what happens when the state energy company pulls out of an export project,” said the source familiar with the project.

The national oil company held a 25% stake in the venture, with oil and gas firm Perenco holding the remainder.

The change in project structure will delay first volumes from the FLNG project for an unknown period.

First production was due to be produced from late 2017, with Russian gas company Gazprom Marketing & Trading contracted as sole offtaker for the 1.2mtpa over eight years.

Ship operator Golar LNG is converting its Hilli vessel into an FLNG facility for the project.

The delay comes as another blow to Gazprom, which was also the intended sole offtaker from Colombia’s cancelled Pacific Rubiales 0.5mtpa FLNG project. The project was suspended in 2015 due to falling oil prices. When Canadian oil company Pacific Rubiales was acquired by Mexican conglomerate Grupo Alfa later in the year, there was no mention of reviving the project.

Perenco declined to comment while Gazprom did not respond to requests for comment. josie.shillito@icis.com