NOT AN OFFICIAL UNCTAD RECORD

SATISFYING ENERGY NEEDS

WITH NATURAL GAS FROM A
SUBREGIONAL
PERSPECTIVE:
THE CAMEROONS CASE

OUTLINE
Overview of the Petroleum sector in Cameroon
Situation of Cameroon
Current actors
Some statistics: Exploration and Production
Situation of the Energy Sector in Cameroon
Cameroons Natural Gas Sector Overview
Natural gas resource base
Institutional framework
Natural Gas Master Plan
Gas Development Opportunities
Local markets
Subregional markets
Conclusion

SITUATION OF CAMEROON
IN AFRICA
Cameroon is situated in
the arm-pit of Africa in
the Central African Region
Population of about
16 million people.
Surface area of 475000sq.km
Modest oil producer:
95000bls/day
No major discovery as yet

EXPLORATION EXPENDITURES
1997-2005
100
90
MILLIONS USD

80
70
60
50
40
30
20
10
0

1997

1998

1999

2000

2001
YEARS

2002

2003

2004

2005

YEARS
2008

2007

2006

2005

2004

2003

60

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

1977

MILLIONSOFBARILS

PRODUCTION STATISTICS
1977-2008

70

PREVISIONS

50

40

30

20

10

SITUATION OF THE ENERGY

SECTOR IN CAMEROON

Population: 16 million people.

Economic growth: 5%
Population growth: 3%
Per capital income: 700 USD
Inflation index: 3%

Location Map

SITUATION OF THE ENERGY

SECTOR IN
CAMEROON

Access to conventional energy: less than 10 % of

Population

Main fuels used: Wood & Kerosene (cheapness,

affordability and accessibility)

675 000 tonnes/year of wood consummed

Electricity: 90% Hydro and 10% thermal

Present demand: 500 MW

Expected to double within 10 years

EVOLUTION OF THE DEMAND AND SUPPLY

OF ELECTRICITY

SITUATION OF THE ENERGY

SECTOR IN
CAMEROON

Government Policy today : Diversify energy

sources to meet the growth rate

Priority is focused on gas

Clean energy source
Existence of enough reserves to satisfy
local market
Protection of environment
Halt deforestation

NATURAL GAS SECTOR OVERVIEW

RESOURCE BASE
INSTITUTIONAL FRAMEWORK
-THE PETROLEUM CODE
-THE GAS CODE
THE NATIONAL GAS PLAN
GAS DEVELOPMENT OPPORTUNITIES

RESOURCE BASE

Cameroon is underexplored in terms of natural

gas

Total discovered recoverable Non-Associated

natural Gas : 5.5 TCF

Risked upside estimated volumes : 20 TCF

Current discovered gas by accident from oil

exploration

Discovered gas rich in heavy components and

located close to main energy centers in Douala
and Limbe

RESOURCE BASE
Reserves are substantial for local
market but not sufficient enough for
classical export schemes
Privatisation of the electricity sector and
the present economic growth have
warranted the promotion of gas-toelectricity projects
The emergence of subregional markets
is an incentive to development of natural
gas projects

INSTITUTIONAL FRAMEWORK
Prior to the promulgation of the
Petroleum Code in December 1999,
no legal framework for Gas
Development
The Petroleum Code regulates the
Upstream sector and provides
incentives for gas exploration and
development

INCENTIVES
Possibility of extension of the exploration
period for appraisal of the gas discoveries
and the search for market outlets
Tax holidays for cost recovery for
development and exploitation of natural
Gas
No custom duties for gas development and
exploitation activities
Possibility to negociate economically
viable terms for Gas development projects

THE GAS CODE

Promulgated to Law on December 30,
2002
Enabling Act published on September
4, 2003
Regulates the Downstream sector for
gas development projects
Legal framework condusive to the
development of Gas resources

THE GAS CODE

Sets an attractive environment for
Private National and Foreign investors
in the Gas sector
Lays down principles governing
regulation of the sector
Guarantee safety of facilities and
environmental protection

THE GAS CODE

Gas Regulator
To enforce the provisions of the Gas Code and its
enabling acts;
To ensure the protection of the rights of customers;
To manage the selection process for concessions,
licences and authorizations;
To ensure application of norms, security and
environment protection;
To monitor compliance with competition and play the
role of alternative dispute resolution authority.

THE GAS CODE

Incentives
Tax write-off for ten (10) years
Guaranteed convertibility of currency
No Government subsidies
Off-and on-shore US dollars accounts
Freedom to transfer funds
Exemption of custom duties for imported
project goods/equipment.

THE NATIONAL GAS PLAN

Objectives
Define an optimum natural gas
development from all known reserves both
Associated and Non-Associated
Centralise coordination of natural Gas
development
Get maximum economic benefits through a
prudent step by step approach to gas
development
Define a long term national gas
development strategy

Possible configuration of Gas development

infrastructure from known resource base
Creation of gas gathering system
Jabane/Ifiari
(144)

- SONARA

144

Afaga
(128)

131
131
151

Kita
(114 Kita Gas 314
Design)
Ekundu Nth
(56)

Edem
(32)

- Centrale thermique de
Gaz sec Limb

Narendi/Idaboto
(131)

GPL
(50 000 t/an)

HUB

314

Condensats
(3 000 bbb/j)

76

20
260

Ekundu Sth
(20)

Centrale thermique
de Kribi
40

360

Sanaga Sud
(234 Sanaga Sud
Gas 260 Design)

Plate-formes
puits

164
76
Kribi L
(88)

Plate-formes production
Dbit de gaz en MMSPC/J

Ile de Bioko

Usine de GNL
Onshore

Kribi B
(76)

Gas Development opportunities

Gas-to-electricity

Kribi gas to electricity plant to go

operational by the end of 2007

Capacity of 150 MW and expected to

grow to 300 MW

PSC on Sanaga Sud field signed in

March 2006 with Perenco Cameroon

Gas sales contract to be signed in June

2006 with AES SONEL

Gas Development opportunities

Conversion of Limbe
Power Plant and
SONARA refinery to
function with natural
gas.

- SONARA
- Centrale thermique de Limb

Gaz sec

HUB

GPL
(50 000 t/an)

Condensats
(3 000 bbb/j)

Gas Development opportunities

Extraction of LPG for local and
subregional markets
Gaz sec

- SONARA
- Centrale thermique de
Limb

Production of 50 000 tons/year

envisaged

Feasibility study on 4 000 m3

storage capacity at Douala is
ongoing

HUB

GPL
(50 000 t/an)

Condensats
(3 000 bbb/j)

Gas Development opportunities

Valorisation of liquids
extracted from wet gas is
envisaged:
about 3 000 barils/day
contemplated

Gaz sec

HUB

- SONARA
- Centrale thermique de
Limb

GPL
(50 000 t/an)

Condensats
(3 000 bbb/j)

Gas Export scheme to LNG in

Equatorial Guinea

Protocol Agreement signed between SNH and

SONAGAS on March 20, 2006 to study the
implementation of the project

The terms of the agreement provide for:

Joint study on the Technical, Economical and Legal
aspects of the export project
Creation of a Steering Committee and Study groups
Study period: 15 weeks
Conclusion to be submitted to both Governments for
ratification

Gas Export scheme to LNG in Equatorial

Guinea
OBJECTIVES

To determine volumes of Cameroon natural gas

necessary to meet the needs of the LNG plant in
Equatorial Guinea

To determine gas requirements of the LNG plant in

Equatorial Guinea

To examine the Legislative and Regulatory

framework applicable for construction of a pipeline
for gas transport from Cameroon to Equatorial
Guinea

To identify financing sources

CONCLUSION

Gas is no more a stranded asset in Cameroon

Natural Gas exploration and development is now a

reality especially considering the underexplored
status of its basins

The new institutional framework has asserted the

governments proactiveness to create the conditions
for gas development

International cooperation among countries sharing

common boundaries is a major incentive on gas
development projects