Angola forms consortium with five oil firms for $2 bln LNG project

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Gas flares burn from pipes at an oil flow station operated by Nigerian Agip Oil Co. Ltd. (NAOC), a division of Eni SpA, in Idu, Rivers State, Nigeria, on Monday, Sept. 28, 2015. Nigeria's daily output of about 2 million barrels of oil makes it Africa's largest producer. Photographer: George Osodi/Bloomberg

CAPE TOWN (Reuters) – Angola has formed a consortium with five international oil companies including Eni and Chevron to develop liquefied natural gas (LNG) for its Soyo plant, the newly formed national oil, gas and biofuels agency ANGP said.

The consortium’s project will have an initial cost of $2 billion, with an aim to start production by 2022, an ANGP spokesman said on the sidelines of the Africa Oil Week conference in Cape Town

Italy’s Eni will operate the project, and the members will share costs according to participation.

Chevron will take a 31% stake, Eni 25.6%, Sonangol P&P 19.8%, Total 11.8% and BP 11.8%.

The Soyo LNG plant is designed to process 1.1 billion cubic feet of natural gas per day and has the capacity to produce 5.2 million tons of LNG per year, as well as natural gas, propane, butane and condensate.

Reporting by Libby George; Editing by Dale Hudson

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