Angola's Soyo LNG Plant Shut Down Until Mid-2015

Source Press
Company Chevron CorporationBP Plc.ENI S.p.A.SonangolTotalEnergies SE 
Tags Service Contracts, Issues & Setbacks, LNG & Gas Storage/Processing
Date May 28, 2014

(Reuters) - The Angola liquefied natural gas (LNG) export project is expected to resume production in mid-2015, a spokesman for the Chevron-led venture said, after a rupture on a flare line forced a shutdown last month.

The $10 billion project has struggled to squeeze out cargoes since starting up last summer thanks to a succession of technical faults.

A rig capsize, electrical fires, pipeline leaks and limited success in processing the plant's liquids-rich gas have hampered performance over the past year.

Last month a major rupture on a flare line triggered a facility-wide shutdown.

"Following investigation into the incident that took place at the plant in Soyo on 10 April 2014, Angola LNG will pull forward a planned shutdown to allow its contractor Bechtel to both correct items from the incident and - in parallel - address plant capacity issues," the spokesman said.

It is expected that this work will continue into next year, with the plant expected to restart in mid-2015, he added.

Reuters reported last week that Angola LNG had approached shipbrokers to lease out its entire tanker fleet, signalling a prolonged inability of the plant to produce fuel for export.

Reacting to news of the shutdown, a shipping source on Wednesday said the availability of so much shipping capacity would weigh on already-depressed rental rates."

Massively negative for LNG shipping to see Angola vessels trade spot for 12 months," he said.

Chevron has a 36.4 percent share in the plant, while Angolan state oil firm Sonangol has 22.8 percent. Other stakeholders include Total, BP and ENI.

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd