Angola is gearing up to redefine its energy landscape with ambitious plans to elevate its Liquefied Natural Gas (ALNG) plant to full operational capacity for the first time since its commissioning over a decade ago.
Bolstered by new gas supplies from Chevron by the end of 2024 and the New Gas Consortium by late 2025, the plant aims to tap into growing global demand for natural gas, particularly in Europe and Asia.
These developments reflect Angola’s strategic pivot towards natural gas, capitalising on its vast reserves and the increasing shift towards cleaner energy sources in global markets.
Historically, the ALNG plant, which was built at a staggering cost of $12 billion, has struggled to operate at its designed capacity of 5.2 million tonnes per year due to declining production at mature gas fields. Currently, the plant operates at around 70% capacity, processing approximately 700 million standard cubic feet of gas daily. However, this is set to change with the introduction of additional feedstock from Angola’s first gas-specific exploration well, expected to begin production in early 2024, and accelerated efforts from the New Gas Consortium, a partnership between BP and Eni. These measures are poised to rejuvenate the plant and strengthen Angola’s LNG supply chain.
Plans for the future also include the possibility of expansion, with Angola LNG contemplating the addition of a mini train with a capacity of three million metric tonnes per year. This move would not only enhance Angola’s export capacity but also cement its position as a key LNG hub in sub-Saharan Africa. Chevron’s Sanha Lean Gas Connection project, which will supply 40% of the plant’s requirements for 15 years, further ensures sustained utilisation and a stable flow of LNG to both international and domestic markets.
These developments align with Angola’s broader energy goals and reinforce its commitment to leveraging partnerships to drive growth in the sector.
Underpinning these advancements is Angola’s recently unveiled 25-year gas master plan, which charts the development of more than 40 gas fields and outlines the potential of 38 trillion cubic feet of discovered reserves and an additional 56 trillion cubic feet of prospective resources.
This comprehensive strategy underscores Angola’s intent to become a regional leader in LNG production, providing significant opportunities for investment and contributing to the country’s economic diversification efforts. By pursuing these initiatives, Angola is poised to play a pivotal role in the global LNG market while meeting its domestic energy needs and fostering long-term energy security.
Source: Further Africa
