Angola LNG likely to restart export in April after 2 years downtime

CHEVRON has commenced recommissioning of Angola’s liquefied natural gas (LNG) export project. The LNG project, operated by Chevron and owned in conjunction with the state oil company, Sonangol and other international oil companies (IOCs), was shut down in April 2014 after several technical failures.
The restart date was pushed back from 2015. The project, which loaded its first cargo behind schedule in 2013, was operating below capacity before the pipeline and other technical failures that eventually resulted in the total shutdown. The plant has a capacity of 5.2million tonnes per year and is expected to reach full potential later this year. Partners on the project had to increase capital expenditure (Capex) allocation to repair the failed components and will be looking to ramp up production to full capacity in the shortest time so the cash flow can be used to offset the unbudgeted extra cost.
Over 60 percent of Angola’s current gas production is flared. The proportion of gas that is eventually commercialised is less than 10 percent. The LNG project is thus very important in Angola’s bid to increase the level of gas commercialisation.