Overview

Equatorial Guinea is the second-largest gas producer in sub-Saharan Africa after Nigeria and third-largest oil producer behind Nigeria and Angola, according to the Energy Information Administration. Equatorial Guinea invested in gas infrastructure during the 2000s, building gas-fired power plants and a methanol facility to make use of the gas from the Alba condensate field.

The government sanctioned the construction of an LNG export plant on northwest Bioko Island in 2004 and its first commercial shipment was sent out in 2007. The country plans to expand its hydrocarbon sector by developing new fields and adding a second train to the LNG plant.

Domestic gas consumption is high compared with other West African countries, but has not contributed to the economic development of the country. Equatorial Guinea is a classic example of the resource curse, with the economy totally reliant on oil revenue and the political elite enriching themselves at the expense of the people. The majority of the population remain very poor and have seen little of the massive wealth generated by the hydrocarbon sector.

Page updated: 06/06/2013