Angola: Angola LNG gas project may cost double initial estimate

17 November 2008

Luanda, Angola, 17 Nov – Total investment in the Angola LNG project may double to US$8 billion, said the project’s director Paulo Oen, cited by Angolan newspaper Jornal de Angola.

During a ceremony to mark the symbolic act of receiving 240 hectares of land prepared for construction of the gas factory by the Bechtel company, Oen said that the increased investment was due to some unforeseen issues linked to dredging and preparing the land for construction of the facility.

Angola LNG handed over to Bechtel the prepared area for the construction company to build the factory by 2012, in a project involving 1,500 workers of various professions, of which 1,000 are of Angolan nationality.

Oen said that with the start of construction by Bechtel, the Angola LNG project would go into its decisive phase for conclusion by 2012.

The factory will have an annual production capacity of 5.2 million tonnes of natural gas (6.8 billion cubic metres) per year, of which part will be provided to Sonangol for domestic use and export, mainly to the American continent and Europe.

Angola LNG is owned by Sonangol, with 22.8 percent, Chevron Corp, with 36.4 percent and BP, Total and Exxon, with 13.6 percent each. (macauhub)