Vitol, the world’s largest independent energy dealer, has signed a deal with Angola LNG to market cargoes of the super-cooled fuel, in the latest deal involving a trade house and a major African LNG project.
Angola LNG is a $10bn development between state oil company, Sonangol, and energy majors Chevron, BP, ENI and Total, which started up in 2013.
It aims to deliver 5.2m tonnes of liquefied natural gas to international markets, or almost 6bn cubic metres. Trading houses, including Vitol, Trafigura and Gunvor, which have played a major role in oil markets for decades are expanding in LNG as growing supplies loosen the grip of long-term fixed contracts over the market. Pablo Galante Escobar, Vitol’s head of LNG trading, said he was “pleased to add these LNG purchases to our portfolio”.
The volumes and terms involved were not disclosed.
Growing output from the US, Australia and Africa are expected to see LNG supplies rise by almost 50 per cent globally between 2015 and 2020, creating more opportunities for traders and a more active spot market. Gunvor last month signed an offtake deal with Equatorial Guinea.
“Vitol has already purchased many LNG cargoes from Angola LNG, and we look forward to continuing our successful relationship.” Artur Pereira, chief executive of Angola LNG Marketing Ltd, said in a statement. Vitol is expected to trade between 7 and 7.5m tonnes of LNG this year.
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