Angola exports first ever cargo of LPG - CNBC Africa

Angola exports first ever cargo of LPG

Commodities

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Analysts predict that a once-niche market for LPG is set to grow and reshape global trade flows. PHOTO: Getty Images

Industry sources familiar with the matter said this on Tuesday, as competitors chip away at the dominance of Middle East producers.

One source said that state oil company Sonangol loaded the 44,000 tonne cargo from the Soyo port on Monday, heading to the Mediterranean.

Analysts predict that a once-niche market for LPG is set to grow and reshape global trade flows with the entry of new producers, bringing down prices and challenging entrenched monopolies.

Angola, Africa's biggest crude oil exporter after Nigeria, shipped the LPG from its newly built liquefied natural gas (LNG) production plant off Soyo at the mouth of the Congo River.

Processing facilities at Soyo strip out LPG from pipelines feeding liquids-rich gas from Angola's offshore fields, with dry gas diverted for liquefaction and export on tankers as LNG.

A Sonangol spokesperson declined comment.

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