A consortium of ChevronTexaco, Sonangol, BP, ExxonMobil and Total will build the Angola LNG project. ChevronTexaco, who is using its affiliate Texaco Angola Natural Gas, as one of the project leaders, and Sonangol, have 36.4 per cent and 22.8 per cent of the venture, with the other three having 13.6 per cent each of the total cost and profits.

Recently, Taylor-DeJongh was hired as financial advisor, and, according to an insider, will advise as to which lenders, international banks and organisations will be contacted as potential lenders.

The project will export natural gas that would otherwise be flared. The gas flares have recently come under scrutiny from environmental bodies as one of the main oil pollutants. It will, according to Laurentino Silva, one of ChevronTexaco’s representatives in Angola, “begin to tap Angola’s wealth of discovered and underdeveloped gas fields”, as well as making natural gas available for Angola’s social and industrial needs. Being in the Atlantic Basin, the consortium aims to sell most of the gas to Southern Europe and North America. The project operating life is estimated to be around 30 years. To date, no customers have been found, but ChevronTexaco is optimistic.

The problems that Angola faces are all the “normal LNG ones” according to an insider at the project. Still, worries of political instability in the area remain. Not only that, but the amount of gas terminals are fairly thin on the water, and there is a possibility of an over saturation in the rapidly growing gas market, as companies begin to aim at diversifying their core, oil incomes.

Angola LNG encompasses both onshore and offshore operations to monetize gas operations in Angola. The base case for the project is to collect and transport 800 MMSCFD of associated and non-associated gas to a LNG plant, located in the Soya Area of Zaire. Offshore fields are nearby the area, reducing transportation expenses. LNG transport is always notoriously expensive. According to an insider speaking to IJ, the estimated bill for the plant- US$2 billion- is now “historic”.

Initially the plant, which will contain adequate space to accommodate all LNG-related facilities-, will have one train with a 4 MMTPA capacity. Should Train 1 be a success, a second train is slated for start one or two years after the commencement of Train 1 operations.

The major process units of the plant, which has facilities to include construction and operational workers, will include: Gas Metering, Condensate Stabilization, Methanol Recovery, Acid Gas Removal, Acid Gas Enrichment, Sulphur, Dehydration, Mercury Removal, Refrigeration, Liquefaction, Fractionation, Storage and Loading.

A terminal will be in suitable water depth somewhere nearby and submarine gas pipelines will be brought ashore to the area.

An estimated peak workforce of 5,000 will help to construct the plant. The workforce will comprise of both locals and expatriates, and will require personnel with a wide range of specialized skills and basic skills. When Angola LNG becomes operational, the workforce is estimated to fall to 450, all of them with specialized skills.

Silva says that the company aims to have the pre-FEED concept optimisation plan completed by September 2003, and expect to start FEDD activities immediately after.IJ

 Alex Ferguson