Angola Plans To Start Non-Oil Gas Production In 2025

Angola plans to start the production of natural gas not associated with oil, from 2025, through the New Gas Consortium (NCG), the Minister of Mineral Resources, Oil and Gas, Diamantino Azevedo has announced as carried by Angola News Agency.

The project, to be developed by the consortium made up of operators Sonangol, Azule Energy, TotalEnergies and Cabinda Gulf, will allow the creation of 400 new jobs, during the construction phase of the respective platforms, as well as a further 300 jobs, during the construction of the onshore gas treatment plant, in the municipality of Soyo (Zaire province).

In addition, the New Gas Consortium foresees contributions to social projects in the order of two million dollars per year, from the date of the start of production until the end of the concession’s production period in 2056, according to Diamantino Azevedo.

To begin exploration activities in the fields called “Quiluma” and “Maboqueiro”, the National Petroleum, Gas and Biofuels Agency (ANPG) and the NCG signed, this Friday, in Luanda, the Risk Service Contract, valued at around four billion US dollars, to cover capital and operational costs throughout the life cycle of the first project of its kind in the country.

On the occasion, Minister Diamantino Azevedo considered the production of gas not associated with oil as an important milestone in achieving the objectives defined by the Angolan Executive, with emphasis on attracting investments, leveraging the economy and contributing significantly to the growth of the National Gross Domestic Product (GDP).

He also highlighted the project as historic in the gas sector, as it coincides with the celebrations of 50 years of National Independence, to be celebrated on November 11, 2025.

The government official also clarified that, initially, the consortium scheduled the start of gas production for 2026, but will do its best to start six months before the scheduled date.

Diamantino Azevedo also said that, in the first phase, NCG will develop the Quiluma and Maboqueiro non- associated gas fields, to supply this product to the Angola LNG factory, as well as the future fertilizer factory in Soyo (Zaire province) and other projects for the use of natural gas.

“It is our conviction that the increase in natural gas production will play an extremely important role in the country’s economic and social growth”, he predicted.

He also added that the aforementioned project will mitigate the risk of the Angola LNG plant operating below its minimum operational efficiency limit and provide continuous supply of gas for domestic use, namely the supply of gas to the Soyo Combined Cycle Plant and guarantee self-sufficiency in the production of cooking gas.

He recalled that the creation of this consortium occurred within the scope of the implementation of the Executive’s actions, aimed at the exploration and production of natural gas not associated with oil, for its monetization and use as a primary source of energy for security and energy transition, with gains economic, social and environmental benefits for the country.

On the other hand, the minister acknowledged that there is still a long way to go, hoping that, with the approval of the Natural Gas Master Plan (PDG), other opportunities can be identified in the “up, mid and downstream”, for the implementation of a robust domestic natural gas industry.

He highlighted that the PDG also contemplates the proliferation of combined cycle and electrical energy production plants, as well as petrochemical complexes, fertilizer plants and steel mills, for the diversification of the national energy matrix and diversification of the national economy.

For his part, the CEO of the operator Azule Energy, Adriano Mongini, assured that the signing of the aforementioned agreement will accelerate the implementation of the project, a fact that will allow the start of gas production six months before the scheduled date, symbolizing the success of the cooperation between the Angolan Executive and the contractor group.

‘More than an investment, the NCG project will increase our natural gas production capacity and diversify the energy matrix, in addition to contributing to the creation of new jobs’, he highlighted.

As for the president of the Board of Directors of ANPG, Paulino Jerónimo, the contract initialed today represents a milestone in the Angolan oil sector, as it marks the culmination of a journey lasting several years of intense negotiations that involved exchange rate, technical, economic and legal aspects., to ensure the precedent conditions.

He pointed out this project as the first for inspection, research, evaluation, development, production and sale of natural gas not associated with oil in Angola.

In line with Presidential Legislative Decree No. 7/18, of May 18, the manager said that this production opens doors to other investors in the oil and gas industry, to boost the value chain with the reflection of opportunities capable of enabling implementation of other projects in the country.

So far, the country only produces natural gas associated with oil, through the Angola LNG processing factory, located in the municipality of Soyo, Zaire province, which aims to reach the peak of its production in the second quarter of 2025, passing from the current 700 million to one billion cubic feet of this product per day.

This increase in production will result, fundamentally, from some ongoing investments in the plant, as well as the increase in the volume of associated and non-associated gas to be supplied to the plant by oil platforms located offshore (high seas) and by the consortia that signed today the contract.

Source: https://energynewsafrica.com