LNG

The LNG carrier “Lobito” with 160,000 cubic metres capacity has just lifted the 400th cargo from the Soyo LNG export plant in Angola that has made the southwest African nation a key global supplier for the past 10 years and an example of how oil and gas and LNG can change lives in developing economies.

Angola, the southwest African LNG producer, has found a willing exploration and production partner in Italian energy company Eni, which has plans to invest around $7 billion in Angola over the next four years along with other partner companies.

Pavilion Energy, the subsidiary of Singapore wealth fund Temasek, said its trading unit had signed an agreement with US major Chevron Corp. for the Asian city state to receive LNG shipments for six years with emissions measured along the value chain.

Subsea 7 SA, the European contractor listed on the Norwegian stock exchange, said it was proud to support African oil and gas development after being awarded a lean-gas project contract in the LNG-producing nation of Angola.

Subsea 7 said its “substantial” contract was awarded by Cabinda Gulf Oil Company (CABGOC), a subsidiary of US major Chevron Corp. operator of the LNG plant.

The contract is for the Sanha Lean Gas Connection (SLGC) project comprising the construction and installation of the Lean Gas Platform system in Block-0 offshore the southwest African state at a water depth of around 70 metres.

Project management and engineering would be performed from Subsea 7’s offices in Paris and Lisbon.

Subsea 7 contracts listed as “substantial” are usually worth between $150 million to $300M.

Fabrication will take place at Sonamet’s yard in Lobito, Angola, from 2021 to 2022, while offshore operations will occur from 2022 and 2023.

“We are delighted to have been awarded this contract by CABGOC, following a public tender,” said Gilles Lafaye, the Subsea 7 Senior Vice President for Africa, the Middle East and Caspian Region.

“This is the result of a long-term collaboration with the client and a track record of delivering successful projects,” added Lafaye.

“The project reinforces Subsea 7’s presence in Angola and our commitment to support Africa’s energy industry,” he stated.

Angola has taken up the rotating presidency of the Organisation of Petroleum Exporting Countries and will chair OPEC meetings during 2021 at a time of change and challenges in the industry.

Angola is the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG as a clean energy source at its liquefaction plant.

The other shareholders in addition to Chevron and Angolan energy company Sonangol are BP of the UK, Eni of Italy and France’s Total.

The Angola LNG plant is located 350 kilometres north of the capital Luanda in Soyo, at the mouth of the Congo River and is one of the world’s most modern LNG processing facilities.

A pipeline network of over 500km delivers gas from offshore oil fields to the Soyo plant designed to process 1.1 billion cubic feet of natural gas per day and produce 5.2 million tonnes per annum of LNG.

Indian liquefied natural gas imports increased for a fourth month of the current fiscal year as volumes received rose more than 9 percent with supplies coming from countries such as Angola in southwest Africa and traditional suppliers such as Qatar.

LNG imports during July came to 2.02 million tonnes (2.73 billion cubic metres) which was 9.1 percent higher than 1.85MT delivered in the same month of 2018.

The main operating terminals on India’s West Coast are at Dahej, Hazira and Dabhol, near Mumbai, and there is one East Coast terminal at Kamarajar, 25 kilometres north of Chennai Port in Tamil Nadu.

The cumulative LNG imports for the first four months of the fiscal year from April to July came to 7.88MT (10.65 Bcm), an increase of 6.6 percent compared with the 7.39MT received in the first four months if last year, according to the Ministry of Petroleum and Natural Gas.

The July imports cost around $800 million versus $900M in July 2018. In the first four months of the fiscal year, the shipments have cost $3.1 billion compared with $3.4Bln in the same period last year.

Indian natural gas production during July edged 0.2 percent higher to 2.71 Bcm versus 2.04 Bcm in the same month of 2018.

Production of natural gas from April to July came to 10.74 Bcm, down 0.3 percent from the 10.78 logged in the April-July period last year.

Of the 30 or so cargoes delivered in July, Angola was a main supplier. The 160,400 cubic metres capacity carrier “Cubal” unloaded a cargo on July 1 at the Hazira terminal from the Angola plant at Soyo in southwest Africa.

The 160,500 cubic metres capacity vessel “Sonangol Benguela” delivered a shipment on July 16 to the Dahej terminal north of Mumbai from the Angolan plant.

The 160,400 cubic metres capacity vessel “Malanje” unloaded another Angolan cargo on July 24 at the Dahej terminal.

Analysts noted that India could easily import and use double its current capacity were it not for its lack of infrastructure.

On the terminal development front, Japanese company Toyo Engineering has been awarded a contract to construct another import terminal near Kodinar, north of Mumbai. This will be the seventh regasification facility on the West Coast when completed.

The facility will be located at Chhara port in Kodinar, part of the Gir Somnath district, and will have 5 million tonnes per annum of capacity.

The Indian Hiranandani Group recently said its floating LNG import facility at the West Coast port of Jaigarh would come on line before the end of 2019, a year behind schedule.

Its H-Energy subsidiary said the terminal would have annual capacity of 4 MTPA and would be capable of reloading LNG into other vessels.

The Jaigarh facility in the state of Maharashtra would be the fifth LNG import terminal near Mumbai.

The major natural gas consuming sectors for the combined LNG and domestic gas output in the last fiscal year were the fertilizer industry (29 percent), gas-fired power (21 percent), city-gas distribution (17 percent), refineries (13 percent) and petrochemicals (7 percent).