Equatorial Guinea turns stranded gas into a regional hub strategy

For almost 30 years, Equatorial Guinea's gas story has centred on Alba. The giant gas-condensate field that once flared its gas, now underpins an LPG plant, power station, methanol facility and, since 2007, an LNG export terminal at Punta Europa. But Alba is well into its late life. The question is no longer how Equatorial Guinea manages that decline, but whether it can reposition Punta Europa into something bigger: a regional gas-processing and LNG hub for the wider Gulf of Guinea.

The Gas Mega Hub concept is working, but it needs more supply

The Gas Mega Hub (GMH) is designed to use existing infrastructure to commercialise gas that might otherwise remain stranded. Chevron’s Alen tieback came onstream in 2021, followed by Alba infill drilling in 2025. In April 2026, Chevron sanctioned Aseng, a single-well tieback in Block I. Alen and Alba currently supply around 175 mmcfd of feed gas, rising to more than 300 mmcfd once Aseng starts production. Together, the three phases are expected to commercialise about 1 tcf over the next decade.

That is a meaningful achievement, but not enough. Even at full capacity, the confirmed GMH phases will fall short of EG LNG's liquefaction capacity, and the gap will widen as they mature. Punta Europa needs additional gas before Alba's remaining output runs out.

Two near-term candidates and one bigger prize

The most immediate options are incremental. Chevron's cross-border Yoyo-Yolanda project, unitised with Cameroon in February 2026, could deliver up to 350 mmcfd through a subsea tieback to Alen, with first gas targeted for late 2029. Smaller Equatorial Guinean discoveries across Alba and Blocks D, O, EG-23, EG-31 and EG-08 add nearly 2 tcf of potential backfill, much of it close to existing pipelines.

The larger opportunity is Block EG-27, now renamed Ebano. With around 3 tcf of contingent resources, it could do more than fill spare capacity: it may support the case for a second LNG train at Punta Europa, if a hub-led development can outcompete a standalone floating LNG (FLNG) option. That is not assured. Ebano lies about 140 kilometres from existing infrastructure, and the earlier Fortuna FLNG scheme collapsed in 2019 after failing to secure financing. SONAGAS now owns the block outright, while ConocoPhillips has signed a Heads of Agreement to participate.

Cameroon and Nigeria raise the stakes

The bigger prize lies beyond Equatorial Guinea's borders. Cameroon has more than 6 tcf of largely stranded gas, and the end of the Hilli Episeyo FLNG contract in July 2026 has intensified the need for a new outlet. Etinde and the neighbouring Sapele discovery could realistically supply Punta Europa by pipeline.

Nigeria offers the most transformative option. The proposed Gulf of Guinea Gas Pipeline, supported by a 2024 bilateral treaty, would transport up to 2,700 mmcfd, roughly four times EG LNG's current capacity. That scale could support domestic power, industrial feedstock and additional liquefaction trains, not just backfill. But the vision depends on firm gas commitments, bankable cross-border agreements and financing that has yet to emerge.

The window is open, but not indefinitely

Success is far from guaranteed. Every route forward, from Ebano to the Nigerian pipeline, will require competitive commercial terms, committed upstream partners and confidence that Punta Europa can attract capital against FLNG and other global LNG options. Equatorial Guinea does have infrastructure, location and two decades of operating experience, advantages that are difficult to replicate elsewhere in the Gulf of Guinea. The opportunity is real, but it will narrow as Alba's legacy production declines.

Continue the conversation with Wood Mackenzie at African Energy Week

Wood Mackenzie will be in Cape Town from 12–16 October 2026, with our team at Stand G4 throughout the week for one-to-one briefings and discussions on the forces shaping Africa’s energy markets.

On 14 October, Gavin Thompson will moderate “New Gas Frontiers to 2035”, exploring the emerging opportunities and integration challenges across the Gulf of Guinea gas market—including the evolving gas story in Equatorial Guinea, Cameroon and Nigeria.

Wood Mackenzie customers can contact their account team to arrange a meeting with us at Africa Energy Week.