Equatorial guinea: Equatorial guinea Energy profile
2013/10/20
Equatorial Guinea, officially the Republic of Equatorial Guinea is a country located in Middle Africa. It comprises two parts: a Continental Region, inclunding several small offshore islands like Corisco, Elobey Grande and Elobey Chico; and an insular region containing Annobón island and Bioko island (formerly Fernando Pó) where the capital Malabo is situated. Annobón is the southernmost island of Equatorial Guinea and is situated just south of the equator.
Bioko island is the northernmost point of Equatorial Guinea. Between the two islands and to the east is the mainland region. Equatorial Guinea is bordered by Cameroon on the north, Gabon on the south and east, and the Gulf of Guinea on the west, where the island country of São Tomé and Príncipe is located between Bioko and Annobón. Formerly the colony of Spanish Guinea, its post-independence name is suggestive of its location near both the equator and the Gulf of Guinea. Besides the Spanish cities of Ceuta and Melilla on the Mediterranean coast next to Morocco, it is the only territory in mainland Africa with Spanish as the official language.
With an area of 28,000 square kilometres (11,000 sq mi) Equatorial Guinea is one of the smallest nations in continental Africa. It is as well the richest per capita; however, the wealth is distributed very unevenly, with 70% of the people living under the United Nations Poverty Threshold of $2/day. With a people of 650,702, Equatorial Guinea is the third smallest country in continental Africa. It is as well the second smallest United Nations (UN) member from continental Africa.
The discovery of sizeable petroleum reserves in recent years is altering the economic and political status of the country. Its gross domestic product per capita ranks 22th in the world; however, most of the country\\\'s considerable oil wealth actually lies in the hands of only a few people. Equatorial Guinea has one of the worst human rights records in the world, consistently ranking part the \\\"worst of the worst\\\" in Freedom Home\\\'s annual survey of political and civil rights and Reporters Without Borders ranks President Obiang part its \\\"predators\\\" of press freedom.
Out of 44 sub-Saharan nations, Equatorial Guinea ranks 9th highest in the Human Development Index (HDI) and 115th in general, which is part the medium HDI nations.
Energy sources
Total installed electricity capacity (2008): 31 MW
Thermal: 96.77%
Hydro-electric: 3.23%
Total primary energy supply (2008): 2,286 ktoe
Equatorial Guinea is the third-major producer of crude oil in sub-Saharan Africa, next Nigeria and Angola. Foreign investment , primarily by U.S. companies, has been poured into the country\\\'s oil sector in recent years. Proven oil reserves are estimated at 1.1 billion barrels.
The Zafiro field is Equatorial Guinea\\\'s major oil producer, with output rising from 7,000 bbl/d in 1996 to approximately 280,000 bbl/d by 2004. Ceiba, the country’s second major producing oil field, is estimated to contain 300 million barrels of oil. Reserves at Alba,Equatorial Guinea\\\'s third significant field, are estimated at almost 1 billion barrels of oil equivalent. Unlike the Zafiro or Ceiba fields, exploration and production at Alba has focused on natural gas, inclunding condensates.
Natural gas reserves are located offshore, near Bioko Island, in the Alba and Zafiro fields. Natural gas and condensate production expanded rapidly in the 5-years following investments in the Alba gas field. The field contains 1.3 trillion cubic feet (Tcf) of proven reserves, with probable reserves estimated 4.4 Tcf.
The gas-fired power plant in Punta Europa, the extension of which was finished in 2004, has four turbines that can generate 28 MW. An additional 4 MW of generation capacity has been built at the methanol complex on Bioko Island. The Riaba dam, which has been in operation since 1989, is an extra source of power on Bioko. The mainland region is supplied by thermal plants, which are connected to a network that works independently from the one on Bioko Island. The government started a major rehabilitation and expansion of the electricity grid in Bioko in 2007 but few areas outside the major towns receive a regular supply of electricity.
Reliance
Despite Equatorial Guinea’s large oil reserves and output, the country has no petroleum refinery. It imports all of its refined petroleum products, which are sold at prices set by the government. The country as well imports electricity from Cameroon. Oil imports in 2007 were an estimated 55 ktoe.
Extend network
The national electrification rate stands at 15%. The government started a major rehabilitation and expansion of the electricity grid in Bioko in 2007, but few areas outside the major towns receive a regular electricity supply. The mainland region is supplied by thermal plants, which are connected to a network that works independently from the one on Bioko Island. Roughly 80 miles of high-tension transmission cable constitute the country\\\'s electricity network.
Capacity concerns
Equatorial Guinea\\\'s electricity generating capacity is presently additional than adequate to meet request on both the continent and the island of Bioko, although the power supply is unreliable. The country\\\'s distribution network remains incapable of delivering reliable electricity to end users, due to ageing equipment and poor management, as demonstrated by regular blackouts in Malabo, the capital. As a result, illegal connections are widespread and small diesel generators are widely used as a back-up power source. The project to modernise the electricity grid continued during 2010.
Renewable energy
Solar energy
Average daily horizontal irradiation is 2.0-2.5 kWh/m2/day, primarily due to the dense biomass coverage in the country. This solar potential is generally unsuitable for large-scale power generation, but could be exploited for thermal water heating, for example.
Wind energy
Sites have been identified in the south of the mainland as having average wind speeds of ~6.0 m/s at 80m, indicating a good potential for wind power generation. However, as from presently on, there are no major wind power projects operational in the country.
Biomass energy
With an estimated biomass potential of 400 tonnes/ha or additional, Equatorial Guinea has extensive biomass coverage. Potential for bioenergy in conjunction with carbon capture and storage has been recognised.
Geothermal energy
No study has from presently on been performed to investigate the geothermal potential of the country. Bioko island is volcanically-derived, and hence may be suitable for further geothermal exploration.
Hydropower
Equatorial Guinea is estimated to have 2,600 MW of hydropower potential. It is estimated that roughly half of this is economically exploitable, indicating a good potential for further hydropower uptake in the country. However, in 2008 hydroelectricity only had a installed capacity base of 1 MW, which as well constituted the total installed capacity for renewable energy in the country.
Energy efficiency
Energy consumption per capita stands at 3.47 toe, considerably higher than the country\\\'s neighbours. The country has as well been involved in energy efficiency workshops run by the United Nations Economic Commission for Europe, as part of the World Energy Efficiency 21 program. Measures are as well in place to reduce the flaring of gas from the country\\\'s oil-production facilities, in an effort to improve efficiency.
Ownership
Electricity market
Equatorial Guinea’s electricity sector is owned and operated by Sociedad de Electricidad de Guinea Ecuatorial (SEGESA), in which the government holds a 62% stake and a Spanish company, Infinsa, the remaining 38%.
SEGESA, the national monopoly provider, has an electricity grid in need of upgrading. Illegal connections are widespread, and as a result, power supply is unreliable. Generous subsidies to small consumers as well contribute towards SEGESA’s financial difficulties.
Gas market
Equatorial Guinea has large reserves of natural gas, estimated at 1.3 trillion cubic feet - equivalent to 28.3 years of output at the 2006 level. The bulk of the gas reserves are located offshore from Bioko Island. Eon of Germany, Fenosa of Spain and Galp Energia of Portugal have formed a consortium to work with Sonagas, the national-owned natural gas company, to construct a network of pipelines and processing facilities on Bioko to export natural gas to Europe. In return, the companies will receive long-term natural gas contracts. Eon will own 25%, Fenonsa and Galp Energia will each own 5%, Sonagas will have a 50% interest and the remainder will be owned by the government.
Liquid fuels market
In 2002, GEPetrol was established as Equatorial Guinea\\\'s national oil company. Since 2002, its primary focus has been managing the government\\\'s stakes in Production Sharing Contracts (PSCs) with foreign oil companies. GEPetrol as well partners with foreign firms to undertake exploration.
The major oil companies in the country include ExxonMobil, Chevron, Texaco, Sasol Petroleum (South Africa), Glencore (Switzerland), Petrobras (Brazil), the Oil and Natural Gas Corporation (India), the Nigerian National Petroleum Corporation and the China National Offshore Oil Company (CNOOC). Getotal, jointly owned by Total and the government, has a monopoly on the distribution of petroleum products, all imported due to a lack of refining capacity.
Competition
Equatorial Guinea\\\'s electricity sector is owned and operated by the national-run vertically-integrated monopoly SEGESA. The government would like to privatise SEGESA, as a joint venture with a foreign utility, but investors have shown little interest. National involvement in the petroleum and natural gas sectors of the country is as well high; GEPetrol and Sonagas are mandated to own at least a 35% interest in all energy projects.
Energy framework
The Hydrocarbons Law No.8/2006 establishes the national ownership of all mineral resources in the country, and the need for ministerial permissions before petroleum operations can occur. The law as well details the environmental responsibilities of petroleum companies operating in the country, and a comprehensive framework for natural gas operations.
There is no dedicated framework for promoting renewable energy. National energy policy is confined to the Hydrocarbons Law.
Energy debates
Current energy debate is centred on the continued expansion of Liquefied Natural Gas on Bioko island by Marathon Oil and the government. Expansion of the electricity grid on Bioko was planned to be completed by the end of 2010, from presently on few areas outside of the major towns receive a regular electricity supply.
Energy studies
Equatorial Guinea is member of the Central African Power Pool (CAPP), created by the nations of Central Africa in April 2003 - a body of the Economic Community of Central African States (ECCAS). The vision of the CAPP is to use the Central African hydroelectric potential, estimated at additional than 650 TWh/year (52 % of all African potential) through the interconnection of national networks. The major objectives of CAPP are to :
- Enforce energy policy at the regional level.
- Promote and develop power trade and ancillary services.
- Increase access to electricity to populations and reduce poverty.
- Create a free regional electricity market.
- Improve electricity system reliability and quality of supply in the whole region.
Role of government
The Ministry of Mines, Industry and Energy (http://www.equatorialoil.com/) is the legislative agency responsible for all matters relating to minerals, petroleum, industry and energy supplies.
Government agencies
No government agencies take an active role in the promotion of, or research into, sustainable energy.
Energy procedure
- Light for Everyone
The government’s “Light for Everyone” programme aims to connect the whole country with a constant, quality, and low-cost electricity current for everyone. It aims to eliminate once and for all the shortage of electricity in large cities.
SEGESA has been benefiting from the government’s cooperation with Chinese companies and has as well established cooperation with Cuba on the exchange of technical knowhow, in order to ramp up its network.
Electricity request has expanded rapidly in recent years owing to higher gain levels and increased economic activity in the non-oil sector. Request is expected to continue to rise rapidly in the next five years, as the government has ambitious plans to expand social housing. The government intends to meet this request by building new gas-fired power stations and investing in the construction of new dams.
Work is ongoing on the Djibloho hydroelectric plant project on the Wele River near Añisok, Centro-Sur province. The project is destined to play a key role in the government\\\'s efforts to diversify its energy resources and improve the supply of electricity in the country. The plant was designed by a Chinese firm, Yellow River Engineering Consulting, and is being constructed by an extra company from China, Sinohydro, at a cost of around USD 5 million, which will reportedly be funded with money borrowed from China. The initial phase of the project was scheduled for completion in November 2011.
Energy regulator
The Ministry of Mines, Industry and Energy is responsible for regulating the energy sector in the country.
Degree of independence
The Ministry is a subsidiary of the government of Equatorial Guinea, reporting due to the President. Funding is allocated via the national budget.
Regulatory framework
The Forest Laws 1997 and 1999 both contain regulations to ensure the sustainable use of the country\\\'s biomass resources.
Regulatory roles
The government approves electricity tariffs, which are heavily subsidised. The Ministry of Mines, Industry and Energy is responsible for promoting standards in the energy sector.
Energy regulation role
The Ministry of Environment and Fishing is active in promoting the sustainable use of Equatorial Guinea\\\'s forest resources, inclunding the drafting of laws governing the forestry sector, inclunding being active in rural development programs.
Regulatory barriers
The continued expansion of the national grid is a necessity for Equatorial Guinea\\\'s continued development. The establishment of an independent regulatory agency for the energy sector would speed this process through supervision.
Country Analysis Note
- Equatorial Guinea\'s economy is heavily reliant on its oil and natural gas industry, which accounted for almost 95 % of its gross domestic product (GDP) and 99 % of its export earnings in 2011, according to the International Monetary Fund. Emphasis on the oil and natural gas industries has led to the lack of development in non-oil sectors, and as Equatorial Guinea\'s oil fields mature, the potential loss in revenue could adversely affect economic increase.
- Equatorial Guinea is the eighth-major crude oil reserve holder in Sub-Saharan Africa, with 1.1 billion barrels of proved reserves as of January 2013. Proved natural gas reserves were 1.3 trillion cubic feet (Tcf) as of January 2013, the tenth-major in the region. Much of these reserves are located offshore near the Bioko Island.
- Oil production averaged 318,000 barrels per day (bbl/d) in 2012, below its peak of 369,000 bbl/d in 2007. Production originates entirely from offshore fields.
The Zafiro field has been the backbone of the country\'s oil production, but its current output has additional than halved since its peak, leaving the country eager to start production from new fields. Despite the recent start of the Alen field, which is producing gas-condensate, new production is not enough to offset natural declines.
- Despite being part the top five major oil producers in Sub-Saharan Africa, Equatorial Guinea does not have any refining capacity. The country consumed 2,500 bbl/d of petroleum in 2012, all of which was imported. The government has announced plans to open a 20,000-bbl/d refinery in Mbini, but the project has been slow to develop.
- Equatorial Guinea exports crude oil to markets in North America, Europe, and Asia. The United States is one of the major importers of crude oil from Equatorial Guinea and received 41,000 bbl/d of crude oil from Equatorial Guinea in 2012.
- GEPetrol is Equatorial Guinea\'s national oil company, which was created in 2001. The company manages the government\'s interest in production sharing agreements and joint ventures with international oil companies. GEPetrol is as well responsible for marketing, oil licensing, and hydrocarbon policy implementation.
- The major foreign investors in Equatorial Guinea are U.S. companies, particularly ExxonMobil, Hess, Marathon, and Noble Energy, although European and Chinese companies have started to play a role in Equatorial Guinea\'s hydrocarbon sector.
- Equatorial Guinea is a net exporter of natural gas. Dry natural gas production has increased rapidly from 1 billion cubic feet (Bcf) in 2001 to 243 Bcf in 2011. Domestic consumption as well grew over the same period, but at a much slower pace from 1 Bcf to 57 Bcf. Â Equatorial Guinea has the resources to increase dry natural gas production, but much of its associated gas is currently flared or re-injected. There have been a number of natural gas discoveries in Ophir Energy\'s Fortuna Complex that may boost production in the next.
- Most of Equatorial Guinea\'s dry natural gas production is exported as liquefied natural gas (LNG). Â The country has one LNG plant, the Punta Europa (ELNG), located on Bioko Island. ELNG came online in 2007 with one train and is fed with natural gas produced at the Alba field. A second train is slated approaching online in 2016, but plans have been delayed in the completed because of concerns over feedgas availability. ELNG operators have signed memoranda of considerate with Cameroon and Nigeria to purchase natural gas from those nations to feed the planned second train.
- Equatorial Guinea exported around 173 Bcf of LNG in 2012, according to FACTS World Energy. Around 77 % was sent to Japan, with the remainder sent to South Korea, Taiwan, Chile, and Greece.
- Equatorial Guinea\'s other national-owned hydrocarbon company, Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas), manages the country\'s natural gas assets, inclunding the industrial and residential gas markets. The company is as well in charge of the distribution, marketing, and exploration of natural gas.
- Many parts of the country rely on independent local generators for electricity as opposed to the national grid. The country has a national grid, but aging infrastructure and poor management has led to issues with reliability. Companies in the oil and gas industry have built their own power facilities to support their operations, according to IHS CERA.
- The country has significant hydropower potential, and currently the vast majority of its total installed capacity comes from hydro power plants. In October 2012, a new hydropower plant, at the Djibloho dam on the Wele River, went online and boosted electricity capacity.
Overview data for Equatorial Guinea
-- = Not applicable; NA = Not available; E = Estimate value
Sources: EIA. For more detailed data, see International Energy Statistics.
Data last updated: May 30, 2013
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