Angola Sees Natural Gas as Key to Economic Growth Amid Declining Oil Production

Angola is focusing on natural gas developments as oil production is expected to decline to 1 million bpd in 2027. Natural gas output is set to jump by 2030, raising LNG exports and state revenues. A recent gas discovery by Azule Energy could be one of many gas plays that could underpin a jump in LNG exports and state revenues from gas. Angola has exited OPEC, which could lead to increased investment in the country's gas sector.

Angola is making significant strides in natural gas development as it prepares for a potential decline in oil production. The country's oil output is expected to drop to about 1 million barrels per day (bpd) by 2027, according to the national oil and gas agency ANPG [1]. However, natural gas output is set to rise by 2030, which could lead to increased LNG exports and state revenues.

The recent discovery by Azule Energy, a joint venture between BP and Eni, has reignited optimism in Angola's gas sector. The company discovered a major natural gas reservoir offshore Angola, with initial assessments suggesting gas volumes in place could exceed 1 trillion cubic feet (tcf), along with up to 100 million barrels of associated condensate [2]. Azule Energy CEO, Adriano Mongini, commented that this discovery is a "landmark moment for gas exploration in Angola" and that the Lower Congo Basin holds significant potential [2].

The excitement around this discovery comes as Angola struggles to boost oil production despite exiting OPEC in January 2024. The country's oil production peaked in 2008 at about 2 million bpd and has since declined due to underinvestment in offshore resources and higher development costs [1]. However, recent oil project startups by Azule Energy and TotalEnergies may not be sufficient to offset the decline in maturing fields [1].

Angola's focus on natural gas development is driven by the potential for increased exports to Europe and Asia. The country is also looking to meet growing domestic demand and drive an industrialization program. The New Gas Consortium (NGC) project, a joint venture between Azule Energy, Sonangol E&P, Chevron, and TotalEnergies, is a significant step forward in Angola's first non-associated gas development [2]. Jimmy Boulter, an analyst at Enverus, described the NGC project as the "real litmus test for gas monetisation in Angola" [2].

The BP-Eni Azule venture is close to launching first gas from the NGC project after completing the Quiluma and Maboqueiro offshore platforms earlier this year [2]. This project is expected to launch around the end of 2025 and could be a game-changer for Angola's gas sector.

Angola's exit from OPEC could lead to increased investment in the country's gas sector. The country is pivoting towards natural gas to help drive an industrialization program based on favorable investment terms [3]. Sub-Saharan Africa's second-largest crude producer after Nigeria, Angola is now looking to capitalize on its gas reserves to secure its energy future.

References:
[1] https://oilprice.com/Energy/Natural-Gas/Natural-Gas-Could-Be-Angolas-Next-Big-Money-Maker.html
[2] https://finance.yahoo.com/news/natural-gas-could-angola-next-230000287.html
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3RR14P:0-angola-seeks-gas-growth-as-oil-output-flatlines-despite-opec-exit/