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|Initial LNG Production Starts at Angola LNG Project|
|=The first cargo is being shipped to Brazil|
The U.S. Chevron Corporation and other companies have started LNG production at Angola LNG Project, capable of producing 5.2 million metric tons per year of LNG. According to Angola LNG Marketing Ltd., the first cargo carried by "Sonangol Sambizanga", which is placed into service for the project, is being shipped to Brazil from the LNG plant in Soyo.|
New LNG production project has gone on stream for the first time in three years since 2010 when LNG production began at "Peru LNG Project". The production at Angola LNG was originally expected to commence in the first quarter of 2012 but afterward the start of the production has been delayed several times.
The first cargo was sold to the participant in the project, Angola's state-run oil and gas company Sonangol and is currently being shipped to Brazil. Other than this several sales and purchase agreements (SPAs) have been concluded. In addition, another deals have been underway.
It is anticipated that the project company will sell LNG that will be produced at the project on a spot or short-term contract basis for the time being. At the project, associated natural gas will be used as a feedstock, which is routinely produced as a by-product of oil drilling and burned as it exits a flare stack. Angola LNG is expected to fix sales destinations on a long-term basis, taking into account the LNG production status in the future.
Chevron is the operator of Angola LNG Project and the largest shareholder with a 36.4% stake, while Sonangol has 22.8% and UK's BP Plc, Italy's Eni SpA, and France's Total SA each hold 13.6%.
|last modified : Fri 21 Jun, 2013 [11:36]|