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Wednesday, September 24, 2014
The LNG industry should not look to see any production from Angola’s LNG facility for some time to come. According to reports, the plant will need to undergo major reconstruction to fix design flaws and corrosion of its nearly-new equipment.
A Reuters report has project leader, Chevron, acknowledging design problems. In the report Chevron CEO John Watson declined to single out anyone for blame. “I don’t point fingers. This is our responsibility. It’s a partnership consortium. The partnership consortium chose the contractor. We’ve run into some design issues. We’re working to correct them,” he told Reuters.
Angola LNG partners include the previously mentioned Chevron, Sonangol, BP, Total, and ENI. The facility was built by Bechtel.
Three sources involved in Angola LNG, who declined to be named because they are not authorized to speak publicly, told the news service that about one-third of the plant needed rebuilding. Estimates on replacing that one-third run about $1-$2 billion.
While the plant is supposed to restart in mid-2015, it could be 2016 before Angola sees its LNG plant up and running again.
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