Anglo-Swiss multinational commodity trading and mining company, Glencore, has entered into a multi-year deal with Angola LNG for the supply of liquefied natural gas (LNG).
The Angola LNG plant based in Soyo, Angola, told Reuters that the deal is expected to help in building the company’s sales book with the most important players in the LNG market across the globe, Oil Review Africa reported.
“Recently, Angola LNG has signed an offtake multi-year deal with Vitol for the supply of LNG.
“It has also entered into a contract with Germany’s RWE to deliver LNG products,” Oil Review Africa reported.
According to Oil Review Africa, “the source reported that the country has been selling all of its LNG through competitive tenders in the global spot market due to the fact that an earlier plan to ship LNG to the US fell through due to the US shale gas boom.”
Angola LNG Marketing Ltd said in a company statement: “Following on from the other sales agreements recently announced by ALNG, this is another step in building a strong sales portfolio with some of the most important players in the global LNG market.
Glencore commented: “Glencore is delighted to establish this long-term contract with ALNG. The agreement provides security of supply for both companies in their expanding portfolios and we look forward to a successful partnership.”
Angola LNG Plant
The $10 billion Angola LNG project is a single train facility with production capacity of around 5.2mn tonnes per year.
The plant uses ConocoPhillips’ proprietary natural gas liquefaction technology. In addition to LNG, it also produces propane, butane and condensate, Oil Review Africa noted.