Eni working on second floating LNG producer offshore Mozambique, CEO says

Italy’s Eni is planning to install a second floating LNG production unit offshore Mozambique as the firm works to ship the first LNG cargo from its Coral Sul FLNG, according to the company’s chief Claudio Descalzi.

In June, the 3.4 mtpa Coral Sul FLNG received its first gas supplies from the Coral South reservoir offshore Mozambique, and Eni is looking to ship the first LNG cargo from the unit later this year.

The Coral gas field is located in the Area 4 of the Rovuma basin.

Eni discovered Coral back in May 2012 and it operates the Area 4 along its partners ExxonMobil, CNPC, GALP, Kogas, as well as ENH.

“We are discussing a possible additional offshore development through LNG, the same fast LNG we are developing in Congo,” Descalzi told analysts on Friday during the company’s second-quarter results call.

The size of the project can range from 2.5 to 3 million metric tons per year, Descalzi said.

“Among our partners there is a positive view, but we have to wait for a final approval,” he said.

“That is clearly a way to develop fast LNG in Mozambique. We have a huge amount of reserves there, in our block we have about 80 Tcf,” the CEO said.

Earlier this year, Eni signed a deal with US LNG player New Fortress Energy under which the latter would deploy its floating liquefaction technology off the coast of Congo for a period of 20 years.

Under the deal, NFE would install its “Fast LNG” facility to produce up to 1.4 million metric tons per year of LNG in the associated gas fields off the coast of Congo.

NFE’s liquefaction design pairs the modular, midsize liquefaction technology with jack up rigs or similar floating infrastructure.

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