Cameroon is not presently an LNG producer. However, with Cameroon’s oil production in decline, there has been a redirection of efforts to monetise its gas reserves, which until 2009 it had been flaring at a rate of 2bcm/year in order to extract oil. Therefore the Cameroon Government is seeking to encourage gas production and liquefaction through a combination of developing a positive legislative and regulatory framework, new licensing rounds, and guaranteeing that reserves will be ring-fenced for LNG projects, including 85bcm (3tcf) reserved for ENGIE and SNH's Cameroon LNG project, and potentially 14bcm (0.5tcf) for Perenco and SNH’s GoFLNG Hilli project.
Cameroon’s gas reserves are currently modest, estimated at 0.15tcm (5.3tcf) although national oil company, SNH, forecasts reserve growth to 0.6tcm (21tcf) by 2035. The Cameroon LNG project is a 3.5mtpa land-based liquefaction facility, whereas GoFLNG Hilli is for a 1.2mtpa floating LNG application. Although Cameroon LNG was the first mover, with pre-FEED and bankability studies undertaken in 2011 and 2012, there appears to have been slow progress since, and it is not clear when, if ever, FID will be reached. GoFLNG Hilli was announced in late 2014, however, Golar’s Hilli LNG carrier is already under conversion to an FLNG, and the project seems more likely to proceed.
Taking these factors into account we have forecast LNG exports from Cameroon.
In our High Case both Cameroon LNG and GoFLNG Hilli take FID in 2015 with first gas from GoFLNG Hilli in 2017 and from Cameroon LNG in 2019 or 2020. LNG exports reach 6.5bcm/year by 2022 and remain at this level to 2035. In our Mid Case only one project, probably GoFLNG Hilli, proceeds with gas production starting in 2018, and reaching 1.7bcm/year by 2022, continuing to 2035. In our Low Case, due to low oil prices, and possibly concerns about securing reserves, neither LNG project proceeds and Cameroon does not become an LNG exporter.
Summarised details of Cameroonian gas industry
This is the executive summary from country chapter Cameroon taken from
the LNG Supply Handbook 2015-2035.
The rest of this country chapter is free to download.
- LNG Supply Handbook 2015-2035
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