Gabon is making significant strides in its energy sector, with plans to harness natural gas as a key resource for domestic power generation. The much-anticipated Owendo gas-to-power plant is set to commence construction in June, alongside VAALCO’s expansion of production capabilities and the successful launch of Karpower’s floating power plants. These developments reinforce Gabon’s commitment to gas as a cornerstone for industrialization and energy transition, presenting lucrative opportunities for investors and service providers.
The upcoming Invest in African Energy (IAE) Forum in Paris will serve as a platform to discuss Gabon’s role in the regional energy landscape, with a particular focus on gas-to-power projects.
Gabon’s Leap in Gas-to-Power
The Owendo gas power plant, developed by Gabon Power Company in partnership with Wärtsilä under a build-own-operate-transfer independent power producer model, aims to increase the country’s electricity generation by 50% by 2025. The plant will use natural gas from Gabon’s offshore fields to address growing domestic demand and facilitate regional energy trade.
Meanwhile, U.S.-based VAALCO Energy is investing $300 million to raise oil production to 30,000 barrels per day by early 2026. A new drilling campaign, with a budget of $200 million, will include 5-10 new wells in 2025. VAALCO’s expansion further solidifies Gabon’s ability to capitalize on its natural gas resources, supporting its growing gas-to-power sector.
In addition, Gabon has successfully launched Karpower’s floating power plants, which now contribute 70 MW of electricity to Libreville’s power grid. These floating plants provide a flexible and scalable solution to the country’s energy needs, ensuring reliable electricity for both industrial and residential use.
Investment Opportunities in Gas-to-Power
Gabon’s accelerated push for gas-to-power presents significant investment prospects. With over 90% of its gas production either re-injected or flared due to limited infrastructure, the country is keen to transition from oil dependency to cleaner energy solutions. The development of the Owendo plant and floating power solutions will bolster Gabon’s long-term energy security and strengthen its position as a regional energy hub.
The demand for advanced technology, skilled labor, and power generation services is expected to rise as Gabon expands its electricity generation capacity, creating new opportunities for companies involved in gas extraction, power generation, and transmission.
Source: Energy Capital and Power
