According to the Oil and Gas Journal (OGJ), Angola has 9.5 trillion cubic feet (Tcf) of natural gas reserves as of January 1, 2008—a significant increase from the 2007 estimated reserves of 2 Tcf.

According to EIA statistics, in 2005, Angola’s gross natural gas production was approximately 300 billion cubic feet (Bcf). Of this, 224 Bcf (75%) was vented or flared, 42 Bcf (14%) was re-injected to aid in oil recovery and 34 Bcf (11%) was marketed. From the marketed share, 5 Bcf was processed into liquefied petroleum gas (LPG) and the remaining 28 bcf was for domestic consumption.

With the considerable increases in proved natural gas reserves and government policies to end natural gas flaring, plans are underway to convert much of the natural gas into LNG for export with some to be used for domestic electricity production.

Chevron and Sonangol together with other shareholders including Total, BP and Eni are planning to build a five-million-ton LNG plant, which could be operational in 2010, when the zero gas flaring policies take effect. ExxonMobil had transferred its share in the Angola LNG project to Sonangol, temporarily giving the NOC and Chevron equal share holdings of 36.4%. However, in April of 2007, Sonangol signed an MoU with Eni to give them a 13.6% share.

Source: Total Corporate Website

The natural gas is expected to come from several offshore fields including Total’s Block 17, BP’s block 18 and Chevron’s blocks Zero and 14. According to Eni the project will produce a total of 128 million metric tons of LNG, 104 million barrels of condensate and 257 million barrels of LPG over a 28 year period. The LNG facility is expected to receive 1 billion cubic feet per day of natural gas and produce over 4 million tons per year of LNG for export plus up to 125 million cubic feet for domestic needs. The LNG is to be directed to the US market, currently intended for the regasification plant at Pascagoula on the US Gulf Coast.