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• Equatorial Guinea’s economy will contract by 3.1% in 2025 after a modest 0.9% growth in 2024.
• Afreximbank will raise $4.5 billion to fund the EG-27 LNG project, spearheaded by Sonagas.
• The EG-27 project aims to process 360 million cubic feet of gas daily, producing 2.4 million tonnes of LNG annually over 20 years.
Equatorial Guinea’s economy will shrink by 3.1% in 2025, following a small recovery of 0.9% in 2024, the World Bank projected. This downturn highlights the country’s fragile economic state.
Amid this, the African Export-Import Bank (Afreximbank) announced it will serve as financial adviser to raise $4.5 billion for the EG-27 liquefied natural gas (LNG) project. Afreximbank’s Advisory and Capital Markets Department (ACMA) will tap its financial expertise and investor network to secure the funds.
The project is led by Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas), Equatorial Guinea’s national gas company. It represents the first phase to develop the EBANO gas field, which contains 3.8 trillion cubic feet of proven reserves.
EG-27 will process 360 million standard cubic feet of natural gas per day. It plans to produce about 7,055 tonnes of LNG daily—or 2.4 million tonnes annually—over 20 years.
Officials consider the project a landmark effort to monetize the country’s gas resources and promote industrial growth. It seeks to enhance Equatorial Guinea’s standing in global energy markets and boost regional energy security.
The project unfolds amid ongoing challenges. The country faces declining oil production and heavy dependence on hydrocarbons, which still dominate the economy.
The African Development Bank (ADB) reports hydrocarbons contribute 42% of GDP, 95% of exports, and 90% of government revenue. This reliance makes the need for economic diversification urgent.
This article was initially published in French by SG
Edited in English by Ange Jason Quenum
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