Cameroon has significant natural gas resources, with proven reserves estimated at around 150 million m³ by the country's national oil and gas company Société Nationale des Hydrocarbures (SNH).

In 2008, ENGIE and SNH formed a strategic partnership to develop a liquefied natural gas (LNG) export facility on the coast of the Kribi region in southern Cameroon. The December 2010 signature of an outline agreement between the Cameroon government and ENGIE further strengthened this partnership and marked an important stage in implementing the SNH-prepared Cameroon Gas Resource Development Plan. As a world leader in gas and LNG, ENGIE contributes its experience to the development of large-scale industrial projects, as well as its ability to access the world's gas markets.

A liquefaction plant for LNG exports

The new gas liquefaction plant will have a potential production capacity of up to 3.5 million metric tons of LNG per year for the first production line. It will be fed by a 170-mile subsea gas pipeline connecting a series of offshore gas production platforms. The site will also produce Liquefied Petroleum Gas (LPG) for sale in the domestic market.

In 2012, ENGIE and SNH signed a Term Sheet of preliminary commercial agreements for the purchase of natural gas with upstream operators in Cameroon that have access to the large volumes of gas resources required to supply the new plant.

The location of the plant and the route of the subsea gas pipeline were selected to minimize their impact on local communities and the environment. Preliminary studies have confirmed the technical, economic and environmental feasibility of the project, and detailed engineering studies were launched in Quarter 1 of this year.

A highly participatory study to assess the social acceptance of the project has resulted in the implementation of a support action plan for local stakeholders that includes development projects that are already underway: construction of boreholes, support for the fishing industry, and the provision of schooling for indigenous Bagyelis communities. ENGIE is also providing support for EICD (European Institute for Cooperation and Development) training programs to support the emergence of very small enterprises (VSEs). The Environmental and Social Impact Study (ESIS) for the project is now in its final stage.

A project of substantial economic importance for Cameroon

When gas resource exploration, gas field evaluation and development, gas supply and transmission pipelines, onshore LPG and LNG production facilities and the infrastructures required to export LNG are all taken into account, this project will result in Cameroon's largest ever inward investment package.

As well as being a priority for the development of Cameroon, this project also responds to growing world demand for LNG. Last year, 244 million metric tons of LNG were sold worldwide, and the outlook for the global LNG market in 2020 is estimated at 370 million metric tons per year.

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