Cameroon’s National Hydrocarbons Corporation (SNH) says the country is entering a new phase of gas development as production from the Hilli Episeyo floating liquefied natural gas (FLNG) project winds down.

In a statement released this week, the state-owned company pointed to the Yoyo–Yolanda gas project and a new round of upstream exploration as the pillars of its long-term strategy. The clarification followed a report by Africa Intelligence that questioned the future of Cameroon’s gas sector after the planned withdrawal of the Hilli Episeyo.

SNH rejected that assessment, arguing that the country is moving from reliance on a single producing asset to a broader portfolio of gas projects.

Yoyo–Yolanda takes center stage

The company identified the Yoyo–Yolanda cross-border gas field, shared with Equatorial Guinea, as the country’s next major gas development. Cameroon and Equatorial Guinea signed a unitization agreement for the offshore field on February 3, 2026, allowing the project to be developed jointly.

SNH estimates the field contains about 2.5 trillion cubic feet of gas and says it will require roughly $4 billion in investment. The project is expected to be led by Noble Energy, a subsidiary of Chevron, and could use existing regional LNG infrastructure for processing and exports.

According to SNH, Yoyo–Yolanda has the potential to become one of the largest gas developments ever undertaken in Cameroon. Its estimated reserves are far larger than the roughly 600 billion cubic feet originally developed through the Hilli Episeyo project.

That does not mean it will replace Hilli overnight. Large offshore developments typically require years of engineering work, financing, commercial negotiations and construction before first production.

New exploration acreage

SNH also highlighted progress on the licensing round launched in August 2025 for nine oil and gas blocks in the Rio del Rey and Douala/Kribi-Campo basins. According to the company, negotiations are underway for production-sharing contracts covering five blocks.

Murphy West Africa secured four of the blocks, while Octavia Energy was awarded the Bolongo block in the Rio del Rey basin. SNH says the participation of Murphy, Octavia and Chevron demonstrates that international investors continue to see potential in Cameroon’s upstream sector.

For now, however, these projects remain at an early stage. Before they can generate revenue, they must move through exploration, resource appraisal, investment approvals and field development.

Replacing Hilli will take time

SNH also argued that the planned departure of the Hilli Episeyo should be viewed as the natural end of a project designed to exploit a mature gas field.

The FLNG vessel entered service offshore Kribi in 2018 under an eight-year operating plan. According to the company, production from the field has now entered its natural decline. SNH therefore disputes suggestions that the vessel’s departure signals the failure of Cameroon’s gas strategy.

The company also downplayed concerns that the end of LNG exports from Hilli would create a lasting gap in government revenue.

It said gas from producing fields will continue to supply the Kribi Power Development Company (KPDC) through existing pipelines, while negotiations are underway to supply other large industrial customers.

Domestic sales could preserve part of the value of the remaining gas resources by supporting electricity generation and industrial activity. They are unlikely, however, to fully replace the export earnings generated by LNG production.

A broader energy strategy

Beyond new offshore developments, SNH says it plans to expand the domestic use of natural gas. The company is promoting onshore gas processing to supply power plants and industrial users while reducing gas flaring.

That reflects a broader policy choice facing Cameroon: whether future gas production should primarily support LNG exports, domestic power generation, industrial development, or a combination of all three. The answer will shape not only future government revenue but also the country’s energy security and industrial competitiveness.

SNH has identified several projects that could support the next phase of Cameroon’s gas industry. Yoyo–Yolanda, the five exploration blocks under negotiation and the arrival of new international operators all point to an industry preparing for the post-Hilli era.

The real test, however, will be execution. Signing agreements and awarding exploration blocks is only the first step. The success of Cameroon’s gas strategy will ultimately depend on bringing those projects into production, securing long-term gas sales and converting new discoveries into sustainable public revenue.

Source: Business in Cameroon