Angola’s LNG project is gearing up for a major expansion, with new supplies of natural gas expected in the coming year. This project, which has been running below its full capacity, is now poised for growth, driven by rising global demand for liquefied natural gas (LNG), especially in Asia and Europe.
A Landmark Investment in Angola’s Energy Sector
Launched more than a decade ago, the Angola LNG project marked one of Angola’s largest energy investments, costing a whopping $12 billion. Backed by some of the biggest names in the industry—including Angola’s Sonangol, Chevron, TotalEnergies, and Azule Energy (a partnership of Eni and BP)—this project was designed to process and export up to 5.2 million tons of LNG each year, equivalent to about 80 LNG cargoes. However, the project has been operating below its potential due to lower-than-expected associated gas production in Angola’s aging oil fields.
Expansion Plans in the Pipeline
Chevron and Azule Energy, which are part of the Angola LNG consortium, are now considering various options to expand the project. According to Adriano Mongini, Azule Energy’s CEO, these options include the addition of a new processing unit or a smaller “mini-train” that would help increase LNG production and allow the project to finally operate at its full capacity.
This expansion plan could allow Angola LNG to meet the growing LNG demand in Europe and Asia, markets that are facing significant supply challenges. For Angola, reaching full production capacity at the LNG facility could mean stronger market positioning and increased revenues in a time of high global energy demand.
New Gas Projects to Bolster Supply
A major part of the anticipated increase in gas supply will come from the New Gas Consortium project, operated by Azule Energy. This project, which includes Angola’s first non-associated gas fields—Quiluma and Maboqueiro—is set to begin production by the end of 2025, six months ahead of schedule. These fields promise a significant boost to Angola’s gas resources and are crucial for ensuring Angola LNG’s ability to maintain consistent and increased LNG output.
Chevron’s Focus on West Africa
Chevron’s interest in Angola and other regions in West Africa underscores the area’s untapped potential in oil and gas. The U.S. oil giant sees West Africa as an under-explored region with opportunities for energy exploration and production, aligning well with Angola LNG’s expansion ambitions. Chevron’s strategy in the region suggests a long-term commitment to bolstering Angola’s presence in the global energy market.
With these developments, Angola LNG stands ready to capture new opportunities, helping Angola become a more prominent player in the global LNG market. The project’s expansion aims to make Angola LNG a reliable supplier of natural gas to a world that increasingly values energy diversity and security.
Source: Tsvetana Paraskova for Oilprice.com, Published: Nov. 8
