Italy’s Eni SpA hopes to reach a final investment decision (FID) on its second floating liquefied natural gas (LNG) project in Mozambique by the end of June next year., according to Reuters.
This project, following the success of Eni’s first LNG project called Coral Sul, will further strengthen Mozambique’s position as a global producer and exporter of LNG.
Additionally, it will contribute to Eni’s gas output from Africa, which can be transferred to Europe, diversifying Europe’s gas sourcing in the coming years as CEO Claudio Descalzi said in January.
FID decision is expected to be made during the first half of 2024. Once the decision is made, the floating LNG ship will begin production and exporting within four years.
Eni’s CEO, Claudio Descalzi, and Italian Prime Minister Giorgia Meloni will visit Mozambique and the Republic of the Congo later this week. The purpose of these visits is to strengthen ties between Italy and these countries, where Eni is developing LNG ventures.
Eni is the operator of Coral Sul, more than two-thirds of which is jointly owned by Eni, Exxon Mobil, and China’s CNPC. Portuguese energy firm Galp, Korean Gas Corp. and Mozambique’s state oil company ENH are the minority partners with 10% each.
The Coral gas field, located in Mozambique’s offshore Rovuma basin, is estimated to hold 500 billion cubic meters (bcm) of natural gas. The current Coral Sul project is already producing 3.5 million tons of LNG, and the new LNG ship has the potential to double this output.
While reaching an investment agreement among the joint venture partners may take some time, the project is mostly ready to proceed. The partners are aligned on the equity lifting, meaning they will take a share of production in proportion to their equity stakes as Reuters mentioned.