Sanha Lean Gas Connection Project Achieves First Gas in Milestone for Angolan Diversification
The project will supply gas from Block 0’s Sanha field to Soyo power plants and the Angola LNG plant, boosting production capacity and strengthening exports
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LUANDA, Angola, December 24, 2024/ — The Sanha Lean Gas Connection project – situated in Angola’s Benguela province – has achieved first gas production. Spearheaded by the Cabinda Gulf Oil Company – energy major Chevron’s Angolan subsidiary – the project will supply natural gas from Block 0 to Soyo power plants and the Angola Liquefied Natural Gas (LNG) facility. For Angola, the project represents a key step towards diversifying the economy, boosting energy security and fostering economic opportunities.
As the voice of the African energy sector and a strong advocate for the vital role gas plays in Africa, the African Energy Chamber (AEC) applauds the milestone made by Chevron and its partners on Block 0. The project would not have been possible without the welcoming and investor-friendly environment established by Angolan President João Lourenço and the Ministry of Mineral Resources, Oil and Gas. The Sanha Lean Gas Connection project represents just one of the many gas-focused developments that are poised to transform Angola from an oil-dependent market to a diversified economy. Through projects such as Sanha, Angola is on track to alleviate energy poverty while creating jobs and business opportunities across the entire gas value chain.
A world-class facility, the project – which achieved FID in 2021 – comprised the design and development of a new platform, integrated with existing Sanha facilities and the Congo River Crossing Pipeline. The first stage of the Sanha Lean Gas Connection project will deliver 80 million standard cubic feet per day (mmscf/d) of gas to the Angola LNG plant, while the second stage will add a further 220 mmscf/d through the commissioning of the Booster Compression module. Chevron currently supplies the LNG facility with 300 mmscf/d via the Congo River Crossing Pipeline. With the start of operations at the Sanha Lean Gas Connection project, the company will increase feedstock by a further 300 mmscf/d, bringing the total amount to 600 mmscf/d.
The Sanha Lean Gas Connection project is just one of several gas projects underway in Angola. In November 2024, Angola’s New Gas Consortium – comprising energy companies Azule Energy (operator), Cabinda Gulf Oil Company, Sonangol E&P and TotalEnergies – signed all the requisite commercial agreements to expedite gas production at the country’s first non-associated gas project. The $2.4 billion project – comprising the Quiluma and Maboqueiro gas fields – is currently 50% complete, with first production on track for late-2025 or early-2026. The deals will see the project start 6 months ahead of schedule.
While the majority of the Angola LNG’s feedstock is supplied via associated gas, Angola strives to boost the development of non-associated projects. In addition to the New Gas Consortium’s project, the country is calling for fresh investment in exploration with the aim of bringing new capacity online. The country’s six-year licensing round – launched in 2019 – is a mechanism enabling companies to seize upstream block opportunities. Angola is preparing to launch its next Bid Round in Q1, 2025, as part of the multi-year strategy, with blocks available in the offshore Kwanza and Benguela Basins.
Meanwhile, to facilitate greater investment across the Angolan natural gas value chain, the government is preparing to launch its Gas Master Plan (GMP). Launched for public consultation in October 2024, the GMP forms part of the country’s broader National Development Plan (2023-2027). The plan offers a comprehensive strategy for developing, utilizing and monetizing Angola’s gas resources over a period of 30 years, aligning with national goals to increase the share of gas in the energy mix to 25% by 2025. Serving as a blueprint of how to invest in Angola’s gas industry, the GMP is expected to create a more competitive and attractive investment climate in Angola.
“Natural gas is the fuel of the future in Africa, and Chevron is making significant strides towards positioning Angola as a major gas producer. The milestone achieved by the company and its partners on Block 0 should be commended, serving as a critical step towards economic diversification and enhanced energy security in Angola. With projects such as this, Angola is affirming its position as a regional hub – both for crude oil and for LNG, LPG and associated gas products,” states NJ Ayuk, Executive Chairman of the AEC.
Distributed by APO Group on behalf of African Energy Chamber.
SOURCE
African Energy Chamber