Angola+Natural+Gas


 * China Likely To Start Investments In Angola’s Natural Gas Sector In The Next Five Years Due To Rich Gas Resources And The Potential In Enhancing Liquefied Natural Gas Plants **

China is likely to start investments in Angola's natural gas sector in the next five years due to rich gas resources and the potential in enhancing liquefied natural gas plants. There have been no major Chinese natural gas investments in Angola in the past five years. However because of the 270 billion m3natural gas reserves the country has and the establishment of a liquefied natural gas plant China is likely to start investing within the next five years. The completion of the Soyo LNG facility aims to raise the incentives for natural gas production in the country.
 * Executive Summary: **

**Discussion:** According to IHS Global Insight, Angola has 270 billion m3 of natural gas reserves however the gas industry is still largely in its infancy. IHS also identifies that around two-thirds of any associate gas produced is either flared or re-injected. Sonangol, which is the national oil company of Angola seeks to enhance the country's ability to produce and market its natural gas reserves because of how rich the gas sector is. According to Angola LNG, there are enough proven gas resources to supply a nominal 5.2 million tons a year, or the equivalent of 6.8 billion cubic meters a year.

Angola LNG is a liquefied natural gas plant in Soyo, Angola and has the potential to produce one billion cubic feet of clean gas per day for domestic and international markets. The facility is supplied by offshore blocks 0, 1, 2, 14, 15, 17 and 18 and is one of the most important investments in the country because of its aims to develop the natural resource and to reduce gas flaring. In 2011 re-injection and flaring accounted for 91 percent of all the natural gas produced in the country.(IV) In August 2013 Angola LNG delivered a cargo of liquefied natural gas to China's National Offshore Oil Corp., CNOOC with a capacity of 155,000 cubic meters. According to Bloomberg CNOOC has LNG terminals but does not have long-term LNG supply contracts with Angola.





** Analytic Confidence: **
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson