Angola LNG signs sales deal with EDF

Angola LNG has signed a flexible sales arrangement with EDF subsidiary EDF Trading to deliver LNG cargoes on an ex-ship (DES) basis from its plant in Soyo, covering multiple cargo deliveries starting this year, through to 2018.

EDF Trading chief executive John Rittenhouse, left, said the deal will “optimise the LNG through the European wholesale market”.

Launched in 2013 at Soyo, south of the River Congo in Angola’s Zaire province, Angola LNG has made a shaky start. The Chevron-backed project halted production in April 2014, after a series of fires and mechanical problems. The shutdown proved ill-timed, worsening the global oversupply of LNG-carrier capacity.

Repairing and refurbishing the plant has added an estimated US$2 billion to the project’s costs. Originally due to reopen at the end of last year, it will not now reopen until this summer. Reports suggest that Angola LNG began commissioning this month, to prepare to restart production.

Angola LNG marketing chief executive Artur Pereira said: “This marks an important milestone for Angola LNG as it re-enters the market.”

A 5.2 million tonne a year (mta), US$10 billion venture, Angola LNG comprises a single train. Chevron holds a 36.4 per cent stake in the project and a state-owned oil company holds 22.8 per cent. Total, BP and ENI hold 13.6 per cent apiece.