To read the full version of this content please select one of the options below:

Output woes will delay, not halt, Angola's gas sector

Wednesday, January 21, 2015

Subject

Outlook for Angola's LNG sector.

Significance

Angola has ambitions to be a significant African liquefied natural gas (LNG) exporter, after Nigeria and Equatorial Guinea. The construction of a multi-billion dollar plant at Soyo on the country's northern border lies at the heart of government plans, and is also seen as a way to reduce gas wastage through 'flaring' and unclogging pipeline networks. However, Soyo has been beset with technical problems.

Impacts

  • Plans to use the sovereign wealth fund as a way to drive diversification may be stymied by fiscal shortages and governance problems.
  • The drop in oil-driven business could prompt Angola's consolidating banking sector to lobby for reforms to facilitate consumer banking.
  • Angolan elites will reduce their oil exposure by diversifying their interests, including into Portuguese and Brazilian telecommunications.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.