Equatorial Guinea plans to convert the existing Punta Europa methanol plant (AMPCO) on Bioko Island into a modular crude refinery as part of its Gas Mega Hub strategy. The initiative is driven by concerns over declining gas production from the Alba field and the need to add downstream value locally rather than relying solely on exports of LNG or methanol. This also points towards recent developments like ConocoPhillips signing a HoA deal for offshore gas exploration in the country’s B/4 and EG-27 offshore blocks. These blocks will connect to the Punta Europa facility. The conversion project is, however, still in feasibility and planning stages, with no confirmed construction or commissioning date, yet.
Project Timeline
December 2019: Government directs the conversion of the AMPCO methanol plant at Punta Europa into a modular refinery
Early 2020: VFuels is awarded a feasibility study contract to design a 5,000 bpd modular refinery
April 2020: The Ministry of Mines and Hydrocarbons and Marathon Oil signs a front-end engineering design (FEED) contract with VFuels
September 2020: The refinery design study completed. The government announces the next phase of investor discussions
2021 to Date: Punta Europa’s AMPCO methanol plant conversion project continues to feature in Equatorial Guinea’s broader Gas Mega Hub planning. However, construction has not yet started
Project Factsheet
Existing Facility: AMPCO methanol plant at Punta Europa on Bioko Island, Equatorial Guinea
Owner: Marathon Oil (bought by ConocoPhilips in 2024), Noble Energy, SONAGAS
Proposed Conversion: Methanol facility into modular crude oil refinery
Target Capacity: 5,000 barrels per day (bpd)
Phases: Phase 1 for crude distillation. Phase 2 for refinery & derivative units
Estimated Cost: US$55 million to US$76 million
Current Status: In planning
Equatorial Guinea Set to Construct Modular Crude Oil Refinery in Punta Europa
Reported August 14, 2021 – The construction of a modular crude oil refinery in Punta Europa by Equatorial Guinea’s Ministry of Mines and Hydrocarbons continues to mark progress. This follows the awarding of a contract for the proposed construction’s feasibility study. The project is being done with Marathon Oil Corporation as partner.
The contract was awarded to Houston based VFuels Oil & Gas Engineering (VFuels). VFuels is a full service oil and gas engineering and design company. It is also involved with fabrication of modular process equipment.
VFuels, as per the contract, will oversee the feasibility study for the construction of a modular crude oil refinery in Punta Europa. It will also do the engineering and design of a 5,000 bpd modular refinery plant. Additionally, the plant will mainly be used to supply refined products for domestic consumption in the West African country. The study also expects to be completion 12 weeks from commencement date.
Read Also: Equatorial Guinea, Vitol sign agreement to develop gas megahub
An Important Step for the Project
Gabriel Mbaga Obiang Lima, the West Africa country’s Minister of Hydrocarbons also described the construction of a modular crude oil refinery in Punta Europa as an important step for the implementation of the project. He also pointed out that it is an important goal to curb stock outs. It will also provide refined products of higher quality to economic operators and the general public.
He also quoted VFuels’ experience in their niche.
“The experience and track record of VFuels in engineering and design of modular refineries for West Africa, Latin America, Asia, and other developing economies that need valuable fuel refining and gas processing infrastructure, will be very beneficial to this project and Equatorial Guinea and that is mainly why they emerged as the best bidders.”
This project is also a part of the initiative of the Year of Investment 2020 promoted by the Ministry of Mines and Hydrocarbons. The initiative seeks investments for a modular refinery in the continental region, storage tanks and the promotion of other projects derived from methanol, among others.
