Angola could gain new natural gas infrastructure for power generation and industrial processes under a new deal signed with a U.S. company.
New Fortress Energy LLC announced it has signed a memorandum of understanding (MOU) with the Angolan Ministry of Mineral Resources and Petroleum, Ministry of Energy and Water and the Ministry of Finance for a liquefied natural gas (LNG) terminal. The facility would supply natural gas to the nation for power generation.
“The signing of this MOU is the first step in moving Angola to become a gas economy,” said Hon. Diamantino Azeved, Minister of Mineral Resources and Petroleum, in a statement. “This unprecedented event involves the approval of three ministries and is supported by the president of Angola to move the country in a new direction.”
Under the MOU, New Fortress would fund, build, and operate an LNG import and regasification terminal and supply gas to power and industrial facilities across Angola and work with the Ministry of Mineral Resources and Petroleum to explore the development of additional indigenous natural gas resources and a domestic liquefaction facility.
“This partnership will provide cleaner, affordable natural gas to Angola, creating significant economic and environmental benefits,” said New Fortress CEO Wes Edens. “With Angola’s transition to a gas economy, significantly lower fuel costs will encourage further investment and directly benefit Angolans. We commend President Lourenço and the government of Angola for their leadership and look forward to building this historic partnership.”
The MOU is non-binding on the parties, and actual terms of any definitive agreement may differ from the terms of the MOU.
The U.S., meanwhile is building LNG terminals along its Gulf Coast to export natural gas from lucrative shale plays to markets across the world. Recent figures from the Energy Information Administration shows that domestic U.S. working gas storage is near 1.9 trillion cubic feet last month and has averaged as high as 3 trillion cubic feet in recent periods.
New Fortress Energy, founded five years ago by Edens, has offices in New York, Florida and Mexico.