Mozambique’s State Oil and Gas ENH’s Chairman, Omar Mitha announced that major investment decisions in regards to the natural gas extraction projects in the Rovuma basin in northern Mozambique will be made before the end of the first half of 2017, Macauhub reported.

According to Mitha, the Italian group ENI, Area 4 operator, will make a final investment decision (FID) still by March and conclude the financial package by the end of the first half, Biqinvest informed.

The ENH’s Chairman ensured that the commercial structure of the project is almost done and financial institutions are now deciding what stake each will take. The project will cost $10b, of which $7b to $8b billion will be spent in the first phase.

Italy’s Eni plans to install an offshore natural gas liquefaction platform with the capacity to produce 3.4m tons/y. The platform will be located in the Coral Sul field, which is estimated to have at least 16tcf of gas.

Meanwhile, Mitha stated that Area 1 project, operated by the US group Anadarko Petroleum, is well underway and is expected soon to begin construction of the housing project to resettle families currently living on land where the future natural gas processing plant will be built.

The plant, to be built onshore in the Palma region, will have two liquefaction units, each with a capacity of 6m tons/y, which represents an increase of 1m ton/y for each.