The Cap Lopez liquefied natural gas (LNG) project in Gabon is not expected to enter production until early 2028. Perenco has now clearly set that deadline, whereas initial plans targeted commissioning in 2026. Valued at more than $1 billion, the facility is intended to turn some gas associated with oil production into exportable products and gas usable on the domestic market.
The shift gives the project a dual significance. Perenco presents construction as advancing in line with the timetable currently adopted for an early 2028 start. But compared with the previously communicated 2026 target, the date represents a two-year delay. Distinguishing the initial timetable from the revised one is essential to assessing the actual pace of delivery and expected benefits for the country.
An industrial chain still under construction
In a progress update published on October 21, the operator reported 100 kilometers of pipelines installed out of a planned 570 kilometers, approximately 17.5% of the announced gathering network. This network must transport gas from fields to the treatment and liquefaction facilities at Cap Lopez, near Port-Gentil in Ogooué-Maritime province.
Work on the new Cap Lopez jetty has also begun, with pile driving. In parallel, the LNG Bayelsa vessel is being converted in Dubai into a floating LNG storage unit designated FSU Cap Lopez. Built in 2003, the LNG carrier has storage capacity of approximately 137,000 cubic meters. Manufacturing and integration of liquefaction equipment form part of the same industrial sequence.
These components must work together. Pipelines gather and transport the gas, onshore facilities prepare it, and the floating unit is intended to store it before shipment. The timetable therefore depends on coordinated completion of several workstreams, some taking place outside Gabon. Published pipeline completion percentages alone do not summarize the overall project’s status.
LNG for export, LPG for the domestic market
At full capacity, the project is expected to produce approximately 700,000 tonnes of LNG per year, mainly for overseas markets. It also plans to produce liquefied petroleum gas (LPG), notably butane, to contribute to domestic supply. Perenco further estimates that monetizing the gas could reduce flaring by approximately 80 million standard cubic feet per day.
Cap Lopez is therefore more than new export infrastructure. Developing associated gas, often less monetized than the oil with which it is produced, can open additional markets and reduce flared volumes. The actual effect will nevertheless depend on volumes recovered, plant stability and the ability to market the different products.
A major investment, with benefits to measure
In February 2023, Perenco announced an investment decision of more than $1 billion to develop the project. At this scale, the postponed start pushes back potential LNG export revenue and LPG volumes expected on Gabon’s market. It also delays the country’s opportunity to join LNG exporters.
Gas is a potential source of diversification for an economy whose public revenue remains highly exposed to hydrocarbons, particularly oil. But building a liquefaction plant does not by itself guarantee immediate or steady revenue. Effects for the state will depend on actual production, prices and sales contracts, operating costs and the applicable tax regime. For local consumers, the question will be how far LPG production actually improves butane availability and on what terms.
The next step is meeting the revised timetable
The early 2028 deadline had already been discussed publicly several months before the October update. Perenco’s statement mainly provides concrete details on construction: 100 kilometers of pipeline laid, the start of jetty work and conversion of the storage vessel underway in Dubai. The company describes the project as well advanced against the date now set, without erasing the delay relative to initial forecasts.
The next milestones to monitor are acceleration of the pipeline network, completion of the jetty and delivery of the floating unit, followed by gradual commissioning of equipment. Production in early 2028 remains an announced target whose realization depends on completing these stages. For Gabon, Cap Lopez represents an opportunity to capture more value from its gas; its economic significance will be judged when volumes are actually produced, exported and made available to the domestic market.
Public monitoring of technical milestones will also help assess construction progress and the credibility of the new commissioning deadline.