Construction of a liquefied
natural gas plant in Angola has halted after numerous design and mechanical
problems, Reuters reported. In confirming reports of issues, Chevron said the
problems with an emergency valve failure and a pressure blast caused production
at the plant to stop in April. Chevron, along with Angola's state-run energy
firm Sonangol, BP, Total and Eni, are partnering together for the plant, which
was estimated to cost $10 billion in 2009. U.S.-based engineering company
Bechtel is in charge of building the plant and in light of the recent problems,
the added costs may increase the price of the project to between $12 and $14
billion.
With the recent shutdown,
sources familiar with the project said the Angola LNG plant may not restart
operations until mid-2015 or 2016. Despite the problems, Angola may have other
energy projects in the pipeline.
Previously, South African
energy and chemical firm Sasol said it was planning on building a gas-to-liquid
plant in Mozambique and may carry out other opportunities in Angola.
"Angola, Ghana onshore
and Tanzania, those types of countries is where we'll take a run," Sasol
CEO David Constable told Reuters.