After two years out of action, Angola LNG is gearing up to restart. The timing could hardly be worse. Since the plant shut down for major repairs in April 2014, much has changed in the world of LNG — for suppliers, not for the better. Demand growth has slowed. Production capacity is increasing, led by new projects in Australia and the US. Prices have collapsed under the weight of excess supply: At little over $4.20 per million Btu, spot prices in Asia are roughly $10 lower than they were two years ago, while European hub prices have halved. A barrel of benchmark Brent crude oil now costs less than $50, versus well over $100 then. The return to service of the 5.2 million ton per year plant will merely add to the glut, which many now see stretching into early next decade.
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