Angola LNG strikes Glencore deal

26 September 2017, Week 38, Issue 708

Angola LNG (ALNG) has signed another sales agreement, this time with Glencore, it announced on September 20. The company has also signed deals with RWE and Vitol this month. 

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ALNG said it had signed a multi-year LNG sales agreement with Glencore Energy UK, under which the company will deliver LNG cargoes to Glencore at destinations around the world, it said. 

The Angolan company described the Glencore deal as “another step in building a strong sales portfolio with some of the most important players in the global LNG market. We look forward to our relationship with Glencore. These sales are all underpinned by the safe and reliable operations at ALNG’s plant in Soyo.”

Glencore, meanwhile, commented that it provided “security of supply for both companies”. 

The RWE deal, announced on September 11, and the Vitol deal, reported on September 4, also work on a delivered ex ship (DES) basis, taking advantage of ALNG’s fleet of tankers. 

The Angolan plant struck a deal with EDF Trading in March 2016, covering sales from 2016 to 2018. 

The company’s efforts to strike deals with a number of counterparts should provide it with a ready market around the world. The plant was built with the idea of shipping gas to the US – with Sonangol even taking a stake in a regasification terminal. As a result of the US’ shale gas boom, this plan came to nothing and ALNG had to reconsider. 

West Africa is increasingly finding a place as a source of trading cargoes. Gunvor signed on, in August, to take cargoes from Ophir Energy’s Fortuna LNG plan in Equatorial Guinea, which is due to begin producing in 2020 – assuming a final investment decision (FID) is reached by the end of the year. 

Similarly, Gazprom’s trading arm struck a deal to take cargoes from Perenco’s floating LNG (FLNG) plan in Cameroon, which is due to start up by the end of this year. 

Edited by

Ed Reed

Editor

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