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Angola LNG Operating at Reduced Rates, Tenders Withdrawn, say Sources
Angola LNG, the country’s sole LNG project, recently canceled tenders owing to production concerns at its facility, trading sources told Reuters on Tuesday.
According to the sources, the business has canceled two sale tenders scheduled to close on March 22 and 27 for April cargoes due to plant difficulties.
“The plant experienced a pressure surge in the loading line and is currently operating at reduced rates. Upcoming tenders have been withdrawn while this is being investigated,” the company’s spokesperson told Reuters.
Experts and trading sources predicted that returning to full capacity would take at least one month.
The Soyo plant in Angola, which has a capacity of 5.2 million tonnes of LNG per year, shipped around 7.59 million cubic meters.
The interruption occurs at a time when Europe is experiencing an unusually mild winter, high stockpile levels, and decreased industrial demand.
“Angola LNG has been sending the vast majority of its output to Europe over the past year, primarily to France, the UK, the Netherlands, and Spain,” said Leo Kabouche, LNG market analyst at research consultancy Energy Aspects.
“With the continued lack of demand from major Northeast Asian buyers and the approach of the shoulder season (between summer and winter peak demand), the impact on Dutch TTF hub near-term prices is likely to be limited,” he added.
The plant, located on Angola’s northwestern coast, has sold all of its LNG through competitive tenders into the spot market, in part because the company’s original plan to send LNG to the United States fell through following the United States’ shale gas boom.
Chevron is the major shareholder in the Angolan project, which also includes TotalEnergies, BP, ENI, and Sonangol of Angola.