Priorities
Repair LNG plant
The Angola LNG plant was shut down because of a gas leak in April 2014. It is anticipated the facility will be offline for a year with a restart date of mid-2015 according to a statement by Bechtel, the contractor of the facility. The plant will undergo maintenance during this time and when it restarts it should operate at capacity.
The plant has a history of technical problems and delays, having been forced to operate at 50% capacity because of gas shorages since February 2014.
Connect gas-producing concessions to the LNG plant
The concessions producing gas for Angola LNG are blocks, 0, 2, 14, 15, 17 and 18. Gas produced from non-associated fields includes Quiluma, Atum, Polvo and Enguia. Production from these fields will also deliver 3.54 million cubic metres per day of gas for use in industrial projects.
Chevron is developing the Greater Vanza/Longui Area project in Block 0, which is expected to be a key supplier of gas to Angola LNG. Blocks 0 and 14 will be connected to the LNG facility by the Congo River Canyon Crossing pipeline. Construction of the $2 billion project began in early 2013 and is expected to be completed in 2014. There are two other major pipelines, which collect gas from blocks 2, 15, 17 and 18 to supply Angola LNG.
Increase gas use and reduce flaring
Angola flares significant volumes of gas, ranking eighth in the world behind Kazakhstan and ahead of Saudi Arabia for the practice, according to statistics from the World Bank for 2011. The country is a member of the World Bank’s Global Gas Flaring Reduction (GGFR) partnership that supports the efforts of national governments and the petroleum industry to reduce gas flaring. The Angola LNG plant received assistance from the GGFR.
Angola has a severely limited market for gas and LNG exports are the only way it will be monetise its reserves. However, in addition to the LNG facility, 3.5 million cubic metres of gas will be delivered to industry around Soyo in Zaire province. If successful, this could lead to greater domestic demand for gas.
Develop pre-salt resources
The Angolan government held a licensing round in January 2011 and invited companies with deepwater experience to investigate its pre-salt geology. Geologists have remarked that it is similar to Brazil’s pre-salt formations, which are estimated to hold 50 billion barrels of oil equivalent. In 2011, Cobalt International announced the presence of hydrocarbons in Angola’s pre-salt, upping expectations. Technical difficulties have plagued companies conducting exploration in these areas, but it is clear the industry is very interested in how they will develop.
Page updated: 17/07/2014