Gas-to-industry project launched in Cameroon

Independent oil and gas company Perenco Cameroon launched Perenco Group’s first gas-to-industry supply project in Central Africa, in July this year.

The project involves the delivery of gas from the Bipaga Gas Processing Centre, located in Cameroon and operated by Perenco Cameroon, to the ceramic manufacturer Keda Ceramics’ manufacturing plant.

The gas is transported through a 6-km pipeline, constructed and operated by Cameroon national oil and gas company National Hydrocarbons Corporation (SNH). This gas powers the factory’s electrical generators and the kilns essential for manufacturing Keda’s ceramic tiles.

Following the commissioning phase, the factory will consume up to 6-million standard cubic feet of gas a day, enabling the production of about 20-million square metres of tiles in various sizes for the local market. This output will meet about two-thirds of the domestic requirement.

The start of operations at this factory, which is the largest of its kind in Central Africa, is expected to create about 2 000 direct and indirect jobs in the Kribi region.

The gas supply from the Bipaga Processing Centre is secured by a gas sales agreement signed in September 2022 between Perenco Cameroon and SNH, ensuring a stable gas supply for the next 20 years.

Perenco Cameroon explains that this new energy supply is key to regional industrial development and enables Keda to achieve the required technical specifications for the most economical production of ceramics, while using “clean, low-cost energy”.

The company adds that Keda Ceramics has now become a new industrial client for the Sanaga Sud Association, which is a conventional gas development jointly operated by Perenco Cameroon and SNH. This project represents a significant growth opportunity which secures the industrial future of the Bipaga-Sanaga site and enables Perenco Cameroon to pursue its gas strategy, which was initiated 15 years ago.

“Perenco Cameroon’s first gas-to-industry project marks an important milestone and strengthens the fruitful and historic partnership between Perenco Cameroon and SNH,” says Perenco Cameroon MD Yves Postec.

He adds that the delivery of gas to Keda Ceramics builds upon Perenco’s successful track record of project delivery in collaboration with SNH in Cameroon, including the 20-year production sharing agreement for Rio del Rey basin signed last year and a joint contract for floating liquefied natural gas (LNG) infrastructure specialist Golar LNG’s Hilli floating LNG unit.

“Our goal in delivering these projects is centred on exploiting and developing Cameroon’s gas resources to support the social, industrial and economic development of Cameroon,” Postec asserts.

Perenco Cameroon’s efforts to achieve this goal are only made possible through its continued cooperation with its partners at SNH who share Perenco Cameroon’s vision for transforming Cameroon, he concludes.