Portuguese Galp Energia’s board of directors has approved the investment for Mozambique’s Coral South area, which is the first development related to the discoveries made in the Area 4 of Mozambique’s Rovuma basin, Ecofin Agency reported.
Galp’s approval of the investment is another breakthrough towards the Final Investment Decision (FID) on the project. Besides partner approvals, Galp noted that the FID is subjected to “closing of the financing of the project, and approval by the Mozambican government of the financing conditions related to the Empresa Nacional de Hidrocarbonetos (ENH) carry,” Natural Gas World informed.
The Coral South project includes the construction of a floating liquefied natural gas (FLNG) unit with a liquefaction capacity of over 3.3m tons annually of LNG. The unit is to be connected to six subsea wells and will be situated in the southern section of the Coral discovery. This is located within Area 4, and contains about 16Tcf of gas.
Eni is the block operator and holds a 50% interest in the Area 4. Other partners, Galp Energia, KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), hold each 10% stake, while CNPC holds remaining 20%.