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Back in 2022, Exmar sold the FLNG to Italy’s Eni for deployment in the Republic of Congo, also known as Congo-Brazzaville.
Besides buying Tango FLNG from Exmar, Eni also chartered the 2002-built Excalibur from Exmar to serve as a floating storage unit.
Exmar said at the time that the value of the deal was in the range of $572 to $694 million, depending on the actual performance of the Tango FLNG during the first six months on site.
Delivered in 2017, the FLNG has a storage capacity of 16,100 cbm and a liquefaction capacity of up to 0.6 million tons per year.
In February last year, Eni shipped the first LNG cargo from the FLNG moored in Congolese waters and this shipment was delivered to Snam’s FSRU-based facility in Piombino, Italy.
Exmar serves as the engineering, procurement and conversion (EPC) contractor for this project, and has designed the mooring system and performed the refurbishments on both vessels at the Drydocks World yard.
The company said in a statement on Wednesday that the liquefaction of natural gas onboard the Tango FLNG had been monitored during the initial months of the operation.
“The tests have proven that the actual production of LNG has exceeded the guaranteed levels, with an adjusted annual equivalent production in excess of 0.6 million tons per annum,” the company said.
As previously reported, the agreement for the sale and purchase of Tango FLNG contains a price adjustment clause related to the performance of the unit.
This includes “a negative correction of $78 million and a bonus of a maximum of $44 million,” Exmar said.
“Based on the production data, Exmar has concluded that it is entitled to a bonus, amount of which is not yet agreed,” the company added.
Eni “does not agree”
Eni also issued a statement on February 7 regarding the matter.
“With reference to the Congo FLNG project and to Exmar’s press release dated, Eni does not agree with Exmar’s statement regarding its alleged accrued entitlement to a positive price adjustment under the relevant contract,” the firm said.
Eni said the “conditions for such adjustment are yet to be assessed pursuant to such contract.”
Two FLNGs
In November 2024, China’s Wison New Energies launched the hull of Eni’s Congo FLNG at its yard in Nantong, China. Eni will name the FLNG Nguya.
The FLNG will complement the existing Tango FLNG, which was also built by WNE.
WNE won a contract from Eni in December 2022 to build a 380 meters long 2.4 mtpa FLNG and officially started work on the project in January 2023.
The new FLNG will serve Eni’s Congo project which will reach an overall LNG production capacity of 3 million tons per year, or about 4.5 billion cubic meters/year, from 2025.
Eni expects Congo LNG’s Phase 2 to be operational by the end of 2025.
(This article was updated with a statement by Eni.)