• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 4 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 3 hours Poll: Will Renewables Save the World?
  • 3 hours New Rebate For EVs in Canada
  • 2 hours One Last Warning For The U.S. Shale Patch
  • 4 hours Chile Tests Floating Solar Farm
  • 2 hours Trump Tariffs On China Working
  • 6 hours Biomass, Ethanol No Longer Green
  • 2 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 6 hours The Political Debacle: Brexit delayed
  • 21 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 12 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 18 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.

Breaking News:

BP Faces Platform Workers’ Strike

Alt Text

Qatar’s Ace-In-The-Hole Against The Saudi Boycott

Saudi Arabia’s boycott against Qatar…

Alt Text

Is This The End Of Alaska’s LNG Ambitions?

Alaska has been pushing forward…

Alt Text

LNG To Win Big In U.S.-China Trade Deal

Recent reports suggest that a…

John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

More Info

Trending Discussions

Angola and Brazil Work Together on LNG Production

Miniscule Portugal in the 15th century used its Atlantic coastline to establish a global empire, which included Brazil, Angola, Mozambique and even Macao in far-off China.

Five centuries later, former Portuguese colonies are discovering trade commonalities, particularly rising petro-states Angola and Brazil.

On 16 June, Angola sent its first liquefied natural gas shipment not to lucrative East Asian markets, but to – Brazil.

While Brazil wriggled out from under Lisbon’s control in 1821, Angola had to wait until 1975 and the collapse of the Portuguese dictatorship, after which the country descended into a vicious civil war that only ended in 2002.

What unites the two former colonies is that they are both rising petro-states.


Of Latin America’s largest country the U.S. government’s Energy Information Administration notes in its country analysis brief, “Brazil is the ninth largest energy consumer in the world and the third largest in the Western Hemisphere, behind the United States and Canada. Total primary energy consumption in Brazil has increased by close to a third in the last decade, due to sustained economic growth. In addition, Brazil has made great strides in increasing its total energy production, particularly oil and ethanol. Increasing domestic oil production has been a long-term goal of the Brazilian government, and recent discoveries of large offshore, pre-salt oil deposits could transform Brazil into one of the largest oil producers in the world.”


The EIA notes, “Angola is the second-largest oil producer in Sub-Saharan Africa behind Nigeria, and recent exploration suggests that Angola's reserves may be larger than initially estimated. Successful exploration in Angola's pre-salt formations continues to drive optimistic oil production forecasts for the country, and the Angolan government is targeting 2 million barrel per day production levels by 2014.  With the first cargo of liquefied natural gas (LNG) scheduled to leave Angola in early 2013, the country is in a position to capitalize on the high demand for LNG to bolster its export portfolio.”

Related article: Shale, Gales, and Tipping the Scales

And where is that initial Angola LNG shipment headed?

East Asia?

The U.S.?

Nope – Brazil.

Angola’s official press agency, Agência Angola Press (ANGOP), announced on 17 June that Angola’s first consignment of liquefied natural gas produced by Sonangás, a subsidiary of national oil company Grupo Sonangol, which sent its first LNG consignment to Brazil on the Sonangol Sambizanga tanker, carrying 160,000 cubic meters.

Angola LNG Ltd chairman of marketing, Artur Pereira said, "The Angola LNG seeks to be a trustworthy and competitive supplier, a strong partner in the sector for the economic development of Angola. The project is a solution adopted to reduce the burning of gas and environmental pollution, through the development of the gas associated with the Angolan offshore oil fields, with the purpose of supplying clean and reliable energy to our clients and make the investments of our stakeholders profitable. This event marks the start of a new production unit, which had not happened since 2010, and is a new source to meet the growing global demand for LNG.”

Related article: New US Energy Secretary will Make a Decision on LNG Exports by December

Angola LNG intends to process and deliver 5.2 million tons of LNG annually, in addition to propane, butane and condensed gases, straight from its Soyo plant, in northern Zaire province. The Angola Soyo LNG facility is also partners with U.S.-based Chevron, Britain's BP, Italy's ENI and France's Total.

And the future?

Apparently the sky’s the limit, as EIA notes, “Angola has proved reserves of natural gas of 10.95 trillion cubic feet. That is the fifth-largest endowment in Africa, and ranks second in Sub-Saharan Africa behind only Nigeria.”

Despite linguistic and cultural connections, Brazil is not the only Latin American petro-state interested in its Southern Atlantic African neighbor. Last week Venezuelan ambassador to Angola, Garcia Jesus Alberto, during a working visit to Mbaza Kongo in northern Zaire province reminded the press covering his trip that Angola and Venezuela signed a deal on energy in 2006 during the visit of the late president Hugo Chavez to Angola and noted an existing agreement subsequently signed between the Sonangol and Venezuelan state oil company Petróleos de Venezuela, S.A. (PDVSA), which resulted in the company receiving concessions on two oil blocs.

Despite African fears of U.S. imperialism and Chinese expansion, Latin America is poised to capture some elements of rising West African production, a scenario that no doubt unsettles Washington as much as it undoubtedly discomfits Beijing.

By. John C.K. Daly of Oilprice.com

Download The Free Oilprice App Today

Back to homepage

Trending Discussions

Leave a comment
  • Rui Correia on June 19 2013 said:
    Dear John

    It is not correct to say that "Brazil wriggled out from under Lisbon’s control". Brazil is the only colony whose independence was declared was declared by the actual government of the day - in this case, the regent prince, who a few years later moved back to Portugal where he assumed the throne as the new monarch.

    Brazil is also the only colony that for a while served as seat of power of the colonial power's empire. Rio de Janeiro was the capital not of Brazil alone, but of the whole empire, including Portugal.

    Best regards,

  • Philip Branton on June 20 2013 said:

    What is more telling is WHO and WHERE the initial funds came from for the "investment"..?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News