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Angola to Start the Construction of Soyo LNG Plant Late this Year

08-30-2007

Angola will start building its multi-billion-dollar Soyo liquefied natural gas (LNG) plant in the fourth quarter of this year and exports are due in late 2011, a state energy official said.

The southern African country, which is already enjoying an oil boom and is one of the world's fastest growing economies, is banking on the project to bring in billions more dollars as it diversifies its energy industry.

"Construction of the factory is scheduled to take four years and the first exports of LNG should start in the fourth quarter of 2011," said Antonio Orfao, president of state-owned Sonangol Gas Natural, which is overseeing the project. Angola, which gained international clout by joining the Opec group of top oil producers in January, also hopes to become a global LNG player once output from the plant, which will cost an estimated US$7 billion to build, hits the market.

"Without a doubt this is the single biggest project in any industry ever implemented in Angola until now," he said.

"Angola is already known as an oil-producing country but the LNG project will put Angola on the map of the world's gas producing countries," he added.

The second-largest oil producer in sub-Saharan Africa, after Nigeria, is currently pumping around 1,8 million barrels per day, according to October loading programmes.

Orfao estimated the project's 30-year lifespan would bring the state an estimated US$10 billion in taxes alone, apart from sales revenues and indirect benefits such as higher employment.

"This project marks the start of a gas industry in Angola. We will transform a product which was in the past considered of no value into a source of revenues, employment and regional development," he said.

"It will facilitate other gas-based projects such as power generation, a petrochemical industry and a gas-related industrial base in Soyo.

LNG isn't an end in itself, but it's a good start," he said, adding that the country would seek further gas exploration.