Project highlight: Angola’s New Gas Consortium

Angola

The New Gas Consortium (NGC) is Angola’s first non-associated gas project. Until now, gas in the country has been captured only as a byproduct of oil extraction.

The consortium aims to increase the country’s gas supply and develop the gas value chain. The NGC is thus in line with strategic aims of the Ministry of Mineral Resources, Petroleum and Gas and the National Oil, Gas and Biofuels Agency, which seek to maintain Angola’s relevance as an energy player during the energy transition.

SPECIFICATIONS: The first phase includes two offshore wellhead platforms in the Quiluma and Maboqueiro gasfields. One of the platforms will be built by Petromar in its Ambriz yard, and the other will be built in Italy by a joint venture consisting of Gruppo Antonini, Proger and Kerry Logistics. The project further includes an onshore processing plant which will be connected to the Angola LNG facility. Angola LNG will then market the gas and condensates via LNG cargoes. Further gas sources may come from blocks 3 and 15/14. By completion, the project is expected to produce around 9.35 mcm (330 mcf) per day.

KEY PLAYERS: The consortium consists of significant players in the Angolan oil and gas sector. The operatorship of the Quiluma and Maboqueiro fields will be guaranteed by the player with the largest stake, Azule Energy (37.4%), a joint venture that combines Eni’s and BP’s businesses in Angola. The other partners include Sonangol P&P (19.8%), Chevron affiliate CABGOC (31%) and TotalEnergies (11.8%).

TIMELINE: The FID for the project was reached in July 2022. Onshore construction began in October 2023, and in the same month, Sapura Energy was awarded a contract to provide engineering, transportation and engineering and installation, along with other services for the wellhead platforms. The project is expected to be completed by 2026.

BENEFITS AND SIGNIFICANCE: The NGC is a major step in Angola’s diversification strategy, which entails a move away from the country’s reliance on oil and also more opportunities for the local workforce. The Quiluma platform will notably be built 100% in-country. Furthermore, if the initial phase is successful, Angola’s gas sector is expected to expand quickly. Azule Energy already plans to drill the first gas exploration well outside of the NGC in 2024. The country will ideally seek to develop a full gas value chain, including the development of petrochemicals.

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