Equatorial Guinea has signed a major agreement with US energy giant Chevron to develop the Aseng Gas Project, marking a significant step in the country’s ambition to become a leading liquefied natural gas (LNG) processing hub in Africa.
The $690 million Incentives Agreement, signed by the Ministry of Hydrocarbons and Mining Development, the Ministry of Finance, and Chevron, will unlock offshore gas reserves in Block I.
The gas will be channeled to the Punta Europa Gas Complex for domestic power generation and LNG processing at the EGLNG facility.
Antonio Oburu Ondo, Minister of Hydrocarbons and Mining Development, hailed the deal as a “catalyst for advancing strategic developments,” adding that it would “enhance national and regional energy security, support clean cooking initiatives and drive economic growth through a sustainable energy supply.”
The Aseng Gas Project forms the third phase of Equatorial Guinea’s Gas Mega Hub (GMH) initiative, which aims to monetise stranded and associated gas resources from both domestic and neighbouring fields.
The GMH leverages existing infrastructure to transform underutilised resources into export revenue and industrial growth.
For instance, the Aseng gas project is tied to the Aseng FPSO, which has been in operation since 2011.
In June, SBM Offshore announced plans to divest its equity interest in the FPSO to the state-owned GEPetrol through a share purchase agreement.
Guinea’s growing gas partnership
Equatorial Guinea is implementing a strategic shift in its gas sector and is advancing several multi-phase initiatives to reinforce its position as a regional gas powerhouse including:
- Alen Gas Monetization Project (580 Bcf)
- Alba Tail Gas Monetization Project (825 Bcf)
- Aseng Gas Monetization Project (~1Tcf)
Alongside these developments, the government is undertaking sweeping regulatory reforms to attract foreign investment.
Updates to the Hydrocarbons Law, Tax Law, Labour Law, and Special Economic Zones framework are underway, ahead of a 2026 licensing round that will offer new exploration opportunities.
These include a reduction of;
- corporate tax from 35% to 25%
- dividend tax from 25% to 10%
- withholding tax from 15% to 10% for non-residents
However, Chevron’s involvement follows a series of strategic partnerships, including ConocoPhillips’ first LNG cargo export from Punta Europa in June 2025.
The Aseng development further consolidates Chevron’s role as a long-term partner in the country’s energy transformation.
Moreover, Equatorial Guinea appointed Afreximbank as financial advisor for the $4.5 billion EG-27 LNG project tied to the country’s EBANO field, which holds 3.8 Tcf of proven gas reserves.
