courtesy Bechtel

Despite permit delays worldwide, Marathon Oil and partners are on-stream six months ahead of schedule with cargoes from a first train of liquefied natural gas, or LNG, at Bioko Island, Equatorial Guinea.

The $1.5 billion project is on budget for shareholders in Equatorial Guinnea Holdings, and the success has produced a taste for a Train II.

The first LNG cargo was delivered to the 138,000 cubic meter LNG carrier Gracilis under the terms of an agreement with BG Gas Marketing LTD (BG) to supply 3.4 million metric tons per annum to BG for 17 years. The first cargo is destined for Lake Charles, La., but BG can elect to switch destinations.

Marathon (60 percent) is joined by partners Sonagas (25 percent), Mitsui & Co., Ltd. (8.5 percent) and Marubeni Gas Development Co., Ltd. with a 6.5 percent interest.

A potential 4 mmtpa Train II is in the works, with an early engineering study contract already awarded.

Elswhere in the world, LNG projects have been on-hold for up to two years, as regulators grapple with public opinion.