Chevron Corp. and a group of investors are moving a planned Angola, Africa, liquefied natural gas (LNG) project forward to the construction phase, and the first delivery to Gulf LNG’s Clean Energy regasification terminal in Mississippi is expected in early 2011.
The Angola LNG project would commercialize dedicated gas resources in the western African country by collecting and transporting gas located offshore Angola to an onshore liquefaction plant located in the Soyo region of the Zaire province. The project is designed to receive 1 Bcf/d of associated natural gas and produce about 5.2 million metric tons a year of LNG and related gas liquids products. Up to 125 MMcf/d of gas would be produced for domestic use in Angola.
“This milestone underscores Chevron’s commitment to grow an internationally competitive natural gas business that provides long-term, sustainable returns,” said George Kirkland, executive vice president, upstream and gas. “Chevron’s experience in executing technically and commercially complex projects is demonstrated by the progress of Angola LNG, which will establish Angola as a competitive source of LNG to the emerging global natural gas market.”
Cabinda Gulf Oil Co. Ltd., a wholly owned subsidiary of Chevron, has a 36.4% interest in Angola LNG Ltd., which has entered into an investment contract with the Angolan government and Sonangol to develop the project. Other shareholders are Sonangol, with 36.4% interest, and BP plc and Total, each with 13.6% interest.
“The benefits of Angola LNG are broad,” said Alan Kleir, managing director of Chevron’s Southern Africa operations. “The project is expected to commercialize the country’s natural gas resources, facilitate more oil development and natural gas exploration and provide natural gas for domestic use to stimulate further economic development.”
The Federal Energy Regulatory Commission (FERC) early this year approved Gulf LNG Energy’s $450 million LNG terminal, which would be located in Pascagoula, MS (see Daily GPI, Feb. 16). The terminal would provide vaporized gas to the interstate grid through a new pipeline that would connect with two interstate pipes and a gas processing plant owned by BP. The terminal also would include two storage tanks with capacity for 320,000 cubic meters of LNG.
Chevron also is the owner of the Casotte Landing LNG project, which is located in Pascagoula as well. It, too, was approved by FERC in February to send regasified LNG into the interstate pipeline grid through interconnections with five pipelines to supply Chevron’s existing oil refinery there.
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