Angola Poised to Become Major Gas Supplier in Southern Africa

Angola Poised to Become Major Gas Supplier in Southern Africa

The Secretary of State for Oil and Gas, José Barroso, announced on Monday that Angola is emerging as a potential gas supplier for Southern Africa.

He highlighted growing demand from countries such as the Democratic Republic of Congo (DRC), South Africa, and Namibia, adding that the region is increasingly looking to Angola for gas supplies.

Speaking at a public consultation on the Natural Gas Master Plan, Barroso revealed that Zambia has proposed constructing an Angola-Zambia gas pipeline (Lobito-Lusaka), which is currently under review. He noted that private entities are also involved in this initiative.

“With the completion of the Lobito Refinery, we may have oil surpluses for export. Zambia has requested the possibility of building a gas pipeline along this route to supply their market and possibly the DRC,” Barroso stated.

He emphasized Angola’s commitment to the Southern African Development Community (SADC) plan for gas distribution, positioning the country as a key supplier if it can confirm sufficient gas reserves.

Barroso also pointed to the creation of a regional institution focused on developing a gas pipeline network to support gas distribution across Southern Africa.

“We have received numerous requests from the DRC, Namibia, and South Africa, which is why we included the option of supplying these markets in the Gas Master Plan,” he added.

During his presentation, Barroso reiterated that the primary goal of the Gas Master Plan is to support Angola LNG, leveraging existing infrastructure in Soyo, a northern hub.

He noted the importance of consolidating the gas pipeline network in Soyo before expanding to other parts of the country.

Regarding future infrastructure, Barroso stressed that any expansion would require significant investment. Should further gas discoveries be made, priority would be given to Angola LNG.

“All the gas we produce is currently associated with oil production, and as oil production declines, gas output also decreases,” Barroso warned.

Angola LNG is currently operating at around 65% capacity, and both the government and consortium partners are working to secure more gas for the facility.

Barroso confirmed that the new gas consortium, which includes nearly all Angola LNG partners, is prioritizing gas production for the facility.

Angola LNG, located in Soyo, is the country’s first liquefied natural gas (LNG) plant, processing associated gas from oil exploration activities in northern Angola.

When asked about tax incentives for the gas sector, Barroso advocated for the establishment of a competitive regulatory framework to attract investment.

“We often talk about tax incentives, but the real focus should be on creating a solid fiscal framework,” he said.

“We are competing with other markets in oil and gas, and our goal is to establish the conditions necessary for the Gas Master Plan to succeed.”

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