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Angola LNG Eyes Non- U.S. Buyers for Its First LNG Supply in Early 2012

Angola LNG is eyeing to market to non-U.S. buyers its first production of liquefied natural gas, which is expected to come out early 2012.

The Angola LNG project, a 5.2 million tonne per annum (mtpa) milking resource, is owned by Angola's state-owned oil company, Sonangol at a 22.8 per cent interest. Other owners include Chevron with 36.4 per cent and Eni, Total and BP with 13.6 per cent stake each.

"Our project was based four years ago on U.S. sales, but since the LNG market is not very good, we are looking for other opportunities," Antonio Orfao, chairman of Angola LNG, told Reuters.

Angola LNG plans to establish a marketing entity that will work on selling its gas to the most competitive markets, Orfao said. He did not specify which markets Angola LNG was targeting.

The rapid increase in shale gas production led Angola LNG to focus away from U.S. buyers, as new drilling and extraction technologies will bring U.S. gas production to a record high this year.

LNG imports by the U.S. have slashed into half since 2007 as domestic gas production was able to sustain output to meet the country's demand.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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