Chevron Announces Green Light for Angola LNG Project

abarrelfullabarrelfull wrote on 09 Jun 2014 12:14

Dec. 10, 2007

Chevron Corp. (NYSE: CVX) today announced that the investors in the Angola liquefied natural gas (LNG) project have agreed to move the project forward to the construction phase. Cabinda Gulf Oil Company Limited, a wholly owned subsidiary of Chevron, has a 36.4 percent interest in Angola LNG Limited, which has entered into an investment contract with the Angolan government and Sonangol to develop the project. Other Angola LNG Limited shareholders are Sonangol with 36.4 percent interest and BP and Total, each with 13.6 percent interest.

The Angola LNG project plans to commercialize dedicated Angolan natural gas resources by collecting and transporting gas located offshore Angola to an onshore liquefaction plant located in the Soyo region, Zaire Province. The project is designed to receive approximately one billion cubic feet of associated natural gas a day and produce approximately 5.2 million metric tonnes a year of LNG and related gas liquids products. It is expected to supply up to 125 million cubic feet a day of natural gas to Sonangol for domestic use in Angola.

"Chevron is pleased to participate in such a significant gas project, and this milestone underscores Chevron's commitment to grow an internationally competitive natural gas business that provides long-term, sustainable returns," said George Kirkland, Chevron executive vice president, upstream and gas. "Chevron's experience in executing technically and commercially complex projects is demonstrated by the progress of Angola LNG, which will establish Angola as a competitive source of LNG to the emerging global natural gas market."

Alan Kleier, managing director of Chevron's Southern Africa operations, added: "Chevron has worked and been in partnership with Angola for the past 50 years, and we appreciate the government of Angola's strong support for the project and are proud to partner with Sonangol and the other shareholders to move this project forward. The benefits of Angola LNG are broad - the project is expected to commercialize the country's natural gas resources, facilitate more oil development and natural gas exploration and provide natural gas for domestic use to stimulate further economic development."

First LNG from the project is anticipated in early 2012. LNG is planned to be delivered to Gulf LNG's Clean Energy regasification terminal in Mississippi for sale in the United States.

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