Angolan LNG susceptible to oil prices
The success of Angolan LNG will hinge on oil prices because of the country’s excessive dependence on associated gas feedstock for LNG production. (BP plc)
Directional impact on forecast:
Bearish on LNG prices
The resumption of LNG exports from Angola is adding to an already glutted global market. The plant shipped three recommissioning cargoes in June – its first batch of shipments since halting operations in April 2014 as a result of technical problems. However, Angola LNG’s challenges are by no means over, and exports from the country are expected to remain under pressure in the coming months because of the low oil price.