Nexant Awarded Contract for Formaldehyde Plant in Equatorial Guinea
The article can be found on Africa OIl & Power here
Equatorial Guinea’s Ministry of Mines and Hydrocarbons and the Atlantic Methanol Production Company (AMPCO) have awarded the feasibility study for the construction of a methanol-to-derivatives plant to U.S. software and consulting services company Nexant.
Located in Punta Europa on Bioko Island, the formaldehyde production plant will enable Equatorial Guinea to diversify its economy through the creation of domestic industry, as formaldehyde represents a key component in the manufacturing of plastics, clothing, paper and other wood derivatives.
The completion of the feasibility study for the construction of the plant is estimated for mid-June.
“We are on track to deliver several projects under the 2020 Year of Investment following the award of the feasibility study for a 5,000 barrel per day modular refinery to VFuels last month, and the award of the feasibility study for the methanol-to-derivatives plant,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons. “These are two landmark projects of the Year of Investment that will boost the local transformation of domestic oil and natural gas and create substantial jobs for the country.”
Comprised of Marathon Oil (45%), Noble Energy (45%) and state-owned Sonagas (10%), AMPCO operates the country’s methanol plant, which is located at Punta Europa and currently produces in excess of one million metric tons of methanol per year.
The construction of the methanol-to-derivatives plant represents one of ten public-private partnership-led projects for which Equatorial Guinea is seeking large-scale FDI through its 2020 Year of Investment campaign. The campaign represents a yearlong initiative centered on energy-focused deal making, serving to diversify the country’s economy, boost entrepreneurship, generate profit for investors and stimulate local job creation.