Eni to Decide on Mozambique’s LNG Project

Italy’s Eni said a final investment decision is expected from partners on Mozambique’s deep-water Coral South floating liquefied natural gas project by December, with production starting five years later, Reuters reported.

The company’s Chief Exploration Officer, Luca Bertelli said: “the facility will have 3.3m tons of LNG (liquified natural gas) production comprising gas treatment, liquification, storage and off-loading facilities,” according to Engineering News. His comments came on the sidelines of an African oil and gas conference. Eni estimates that the Coral discovery contains about 16Tcf of gas in place.

Egypt Oil&Gas reported late September that Eni had approached banks for billions of dollars to finance the huge offshore gas development. Eni had met with bankers in London to discuss financing for the development of the Coral field. However, the banks were also looking for credit guarantees from foreign governments, including Britain and China. Accordingly, in early October, Eni secured a 20-year deal with UK’s British Petroleum (BP) to buy the field’s LNG. This cleared the way for Eni and Mozambique to make the long-awaited final investment decision on the project.

In related news, Bertelli said that ENI expected first oil production starting in early 2017 from Ghana’s $7.9b offshore field, with gas production coming online in the second half of 2018. An estimated 60,000 barrels of oil will be produced by a floating production facility capable of also treating around 210mcf of gas, as Ghana aims to become a major African oil and gas producer.


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