Angola LNG Startup Seen Helping Ship Rates

angola lng
The liquefied natural gas plant in Soyo, Angola, image: Chevron

Isaac Arnsdorf

June 5 (Bloomberg) — Rates to ship liquefied natural gas will benefit from the startup of the Angola LNG export facility as vessels dedicated to the project stop competing for spot cargoes, according to Arctic Securities ASA.

“The benefit for LNG shipping will be through Angola LNG removing their vessels from the short-term/spot market, tightening the market,” Erik Nikolai Stavseth, an Oslo-based analyst at the investment bank, said in an e-mailed report today.

The $10 billion plant, originally scheduled to start almost 18 months ago, produced its first fuel before loading a cargo this month, three people with knowledge of the matter said. The facility plans one or two shipments in June and July before checking all systems and resuming output in the fourth quarter, said the people, who asked not to be identified because the information isn’t public.

The project has seven dedicated vessels, according to the website of Angola LNG Supply Services LLC, the affiliate providing transportation. Chevron Corp. is the project’s largest stakeholder with 36.4 percent, followed by state-owned Sonangol EP with 22.8 percent and Total, BP Plc and Eni SpA with 13.6 percent each, according to Angola LNG’s website.

Copyright 2013 Bloomberg.