Republic of Congo will soon pass a new gas code as it tries to attract investment

The oil minister of the Republic of Congo said that the new gas code is expected to be passed by the parliament this month. This will help the country attract more investments in the sector, which is at the core of its national agenda for development.

The code establishes a legal framework to guide gas exploration, production, and development for the Central African nation, which hopes to double its oil production by 2020 to 500,000 barrels equivalent to oil.

Bruno Jean-Richard Itoua's speech at the African Energy Conference in Cape Town was viewed by many. He said: "We are guided a strong conviction that the future of Congo can not rely only on oil. It must also depend on gas."

He said, "This is the reason we put gas valorization in the heart of our strategic plan."

Eni's Marine XII offshore concession, which includes the Nene, Litchendjili, and Minsala, undeveloped discoveries, is the main contributor to the gas production in the country.

Eni announced in August that its floating Nguya liquefied gas unit would leave China for the second phase its Congo LNG Project. This unit will increase current production by four times to 3,000,000 metric tons per year by the end of the year.

Itoua stated that the project would strengthen the country’s position on the international market for gas and will help to meet the needs of domestic electricity, cooking fuels and industrial feedstock.

This project is much more than an industrial success. It is a symbol for our commitment to diversifying our energy mix.

Eni is not the only oil company in the country. Trident Energy, TotalEnergies, and Wing Wah are also active.

Itoua stated that the next round of oil and gas licenses would be launched by the end the year. He did not elaborate. (Reporting and editing by Emelia Sithole Matarise; Wendell Roelf)

(source: Reuters)