
Gabon's Cap Lopez LNG project delay risks missing favorable market window
Gabon's Cap Lopez liquefied natural gas LNG project, intended to position the country as an African LNG exporter, faces delays that could push its first exports to 2027. This setback risks diminishing the expected commercial advantage for Gabon, especially as new competing capacities are set to enter the global market. The conversion of the former LNG Bayelsa tanker into a floating storage unit FSU in Dubai is still ongoing, postponing the establishment of the full chain required for production, storage, and export of Gabonese gas. This FSU is central to the Perenco-led project, designed to store LNG before loading onto tankers. Without it, Gabon's entry into the international LNG market cannot proceed as initially planned. The project aims for an annual capacity of approximately 700,000 tons of LNG, with an investment exceeding one billion dollars, seeking to diversify hydrocarbon revenues and establish natural gas as a new export driver. The current global LNG market offers favorable conditions for new exporters like Gabon, with geopolitical disruptions in the Middle East reducing supply and supporting prices. Spot LNG prices in Asia reached about $17.5 per million British thermal units MBtu in the second quarter, a 45% increase, while Qatar and UAE cargo volumes decreased. A rapid market entry would have allowed Gabon to capitalize on high prices and constrained supply. However, the delay means Gabon might face a more competitive market as new liquefaction capacities come



