Sunday, February 16, 2025

Angola Eyes Expansion in LNG Market as Nigeria Struggles with Production

As Nigeria’s liquefied natural gas (LNG) production faces ongoing setbacks, Angola LNG (ALNG) is stepping in to fill the supply gap, aiming to capture growing demand across Europe and Asia. For Angola, this expansion marks a strategic pivot, showcasing the nation’s potential to become a major LNG supplier. By increasing production, Angola hopes to attract global energy investors and provide more robust energy security for gas-hungry regions.

ALNG, already backed by industry giants like Chevron, TotalEnergies, and Sonangol, has recently announced plans to add a mini production train, capable of producing an additional 3 million metric tons annually. This expansion comes as the plant ramps up gas supplies from new sources. ALNG expects extra feedstock from Chevron by the year’s end, and a significant boost from the New Gas Consortium, managed by Azule Energy, by late 2025. These additions will enable ALNG to reach its full capacity of 5.2 million tons annually, which the facility has struggled to achieve since its $12 billion commissioning over a decade ago.

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Current production averages just 700 million standard cubic feet daily—only 70% of ALNG’s operating capacity. Angola’s Gas Master Plan, released earlier this year, outlines a 25-year roadmap to boost production by developing more than 40 gas fields and tapping into its 38 trillion cubic feet of discovered gas reserves, alongside another 56 trillion cubic feet in prospective resources. This ambitious blueprint not only envisions ALNG running at full capacity but also proposes long-term sustainability through new exploration projects.

Chevron’s Southern Africa managing director, Billy Lacobie, emphasized the importance of maximizing LNG exports and supporting Angola’s domestic energy market. Chevron’s Sanha Lean Gas Connection, expected to begin gas supply by late 2024, will fuel 40% of ALNG’s operations for the next 15 years. According to Azule CEO Adriano Mongini, this influx will allow ALNG to consistently meet market demand and pave the way for its planned expansion, potentially transforming Angola into a regional LNG powerhouse.

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