Angola LNG to ship cargo in May, Chevron CEO says

The Chevron-led $10 billion Angola LNG project is expected to ship its first cargo of chilled gas in May after a two-year shutdown, Chevron’s CEO John Watson said on Friday.

The Angola LNG project was closed in April 2014 after a major rupture on a flare line. The LNG project started recommissioning process in January this year.

“Production from the Angola LNG plant is imminent and a cargo shipment is expected in May,” Watson said in a statement.

Earlier this year, Watson said the company expects to ship first LNG cargo during the second quarter of this year. According to Watson, most of the first production from Angola LNG will be sold on spot market.

Angola LNG is a joint venture between Sonangol (22.8%), Chevron (36.4%), BP (13.6%), Eni (13.6%), and Total (13.6%).

The LNG plant, located in Soyo, is a single-train facility able to produce 5.2 million tonnes per year.

First-quarter loss

Chevron on Friday reported a loss of $725 million for first quarter 2016, compared with earnings of $2.6 billion in the same quarter a year before.

Sales and other operating revenues in first quarter were $23 billion, compared to $32 billion in the year-ago period.

“Our upstream business was impacted by a more than 35 percent decline in crude oil prices,” Watson said, adding that the company’s downstream operations “continued to perform well, although overall industry conditions and margins this quarter were weaker than a year ago.”

“Our efforts are focused on improving free cash flow,” Watson stated. “We are controlling our spend and getting key projects under construction online, which will boost revenues,” the CEO added.

LNG World News Staff