Angola LNG Still Eyes 2Q Restart: Chevron

Angola LNG is still expected to ship its first LNG export cargo for two years in the second quarter of 2016, according to Chevron's 10K annual report released late February 25, echoing remarks made two weeks ago by Chevron's chief executive John Watson at the US major's annual results.

Chevron's annual report describes Angola LNG as "the world's first LNG plant supplied with associated gas, where the natural gas is a by-product of crude oil production," adding that "feedstock for the plant originates from multiple fields and operators." It noted that the remaining economic life of the project "is anticipated to be in excess of 20 years."

Angola LNG opened in mid-2013 at a cost of some $10 billion but shut soon afterwards for repairs to a series of technical faults. Then a rupture on its flare line forced a lengthy shutdown in April 2014. Work on plant modifications was completed early this year and re-commissioning of the plant began.

At full capacity, the plant will receive 11.3 bn m³/yr (1.1 bn ft³/day) of associated gas and produce 5.2mn metric tons/yr of LNG exports, plus some natural gas liquids. The venture is owned by Chevron 36.4%, Angolan state Sonangol 22.80%, BP 13.6%, Eni 13.6% and Total 13.6%. Neither Chevron nor Angola LNG have divulged the cost of repair work undertaken since 2014.

Chevron's 10K report also notes that the US major holds a 38.1% interest in the Congo River Canyon Crossing Pipeline project that is designed to transport up to 250 mn ft³/day of natural gas from offshore blocks 0 and 14 to the Angola LNG plant. "Construction on the 87-mile offshore pipeline was completed in mid-2015; start up is planned for 2016."

Chevron added that production start-up of the second development stage for its Mafumeira Sul field in block 0, with a design capacity of 150,000 barrels/day of liquids and 350mn ft³/day of natural gas, is planned for second half 2016 with ramp-up to full production expected through 2018.