Equatorial Guinea has taken a significant step in its natural gas strategy by signing an Incentives Agreement with Chevron for the development of the Aseng Gas Project in Block I.
The accord, concluded between the Ministry of Hydrocarbons and Mining Development, the Ministry of Finance, and Chevron, reflects the government’s ambition to consolidate its role as a leading natural gas hub in Africa.
As published on African Energy Chamber, the Aseng Gas Project represents an initial investment of about $690 million and will unlock new volumes of natural gas to be directed toward domestic power generation and processing at the EGLNG facility.
The move ensures feedstock supply for the Punta Europa Gas Complex, one of the country’s most vital industrial assets, while simultaneously enhancing energy security and creating new avenues for value addition.
This development marks more than a single project milestone. It reinforces the government’s broader Gas Mega Hub (GMH) initiative, which is designed to monetize regional gas resources by leveraging Equatorial Guinea’s existing infrastructure.
Integration of production from the Aseng field constitutes the third phase of the GMH, providing reliable feedstock for midstream facilities and further cementing the country’s role in Africa’s energy future.
“The Aseng Gas Project will provide a reliable supply of LNG to global markets while serving as a catalyst for advancing strategic developments such as the Punta Europa complex. In addition, it will enhance national and regional energy security, support clean cooking initiatives and drive economic growth through a sustainable energy supply,” said Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development.
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Since its inception, the GMH has been a cornerstone of regional cooperation, pooling stranded or associated gas resources from both domestic fields and neighboring countries for processing through Punta Europa’s infrastructure.
By transforming underutilized resources into export revenues, power generation, and industrial growth, the initiative has become central to Equatorial Guinea’s long-term energy vision.
Partnerships with international operators have already enabled the country to process gas from the Alen field and other regional sources, and the Aseng Gas Project adds further momentum, with Chevron strengthening its role as a committed strategic partner.
The agreement builds on recent milestones in Equatorial Guinea’s gas market, including ConocoPhillips’ first cargo export from the Punta Europa facility in June 2025, a critical advance in the GMH strategy.
The Aseng development is now set to become a cornerstone for the next stage of the country’s energy evolution, combining infrastructure planning, progressive reforms, and global partnerships to harness natural gas as both a source of export revenue and a driver of broad-based economic growth.
In tandem with these energy initiatives, the government is pursuing sweeping regulatory reforms aimed at reinforcing its appeal to investors. Updates to the Hydrocarbons Law, Tax Law, Labor Law, and the Special Economic Zones framework are underway, part of a deliberate effort to establish a transparent, modern, and competitive business environment.
These reforms, along with preparations for the 2026 licensing round that will feature strategic upstream assets, are designed to attract new investment across the oil and gas value chain.
By aligning resource monetization with policy reforms and international collaboration, Equatorial Guinea is positioning itself not only as a gas processing hub but also as a model for sustainable energy-driven economic transformation in Africa.
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Image Credit: LNG Prime LLC
