This July marks the end of an era for Cameroon's energy sector: the only facility capable of turning natural gas into liquefied natural gas (LNG) has been withdrawn from the waters of Kribi. With no replacement installation, the country is left without the capacity to export its gas in liquid form, a blow to an economy already under pressure.
The Hilli Episeyo, a former methanier that was converted, spent eight years extracting, liquefying and loading Cameroonian gas onto LNG carriers. Operated by the Norwegian shipowner Golar LNG, it was the cornerstone of Cameroon's LNG export project, monetising a natural resource that had previously been under‑exploited.
Golar has chosen to redeploy the vessel to Latin America, where its expertise and crew find more attractive opportunities. The decision was made without any local alternative being offered, leaving a technical and commercial void that the government has yet to fill.
The financial consequences are immediate. Export revenues from LNG, which constituted a non‑trivial source of foreign exchange, will be suspended. Analysts warn that the loss of this unit will reduce Cameroon's ability to diversify its hydrocarbon income, which is still dominated by oil. The budget deficit could widen, forcing the Treasury to revise its revenue forecasts for the current fiscal year.
Sector‑wise, the lack of liquefaction capacity exposes the vulnerability of an energy strategy that relies too heavily on a single asset. The country will have to consider either building a permanent on‑shore facility or launching a new floating project to secure the natural gas value chain.
The government has said it is seeking private partners and multilateral financing to revive a liquefaction project. No concrete agreement is in sight yet, but pressure from local stakeholders and the communities around Kribi is pushing for accelerated negotiations. The question remains open: will Cameroon be able to attract a new investor before the end of the fiscal year?
In the coming months, the country's ability to bounce back will depend on how quickly it can mobilise the necessary resources to replace the Hilli Episeyo. A coordinated response, blending political will, external financing and technical expertise, will be essential to turn this setback into an opportunity to modernise the gas sector and ensure longer‑term economic stability.
