US LNG player New Fortress Energy said it has signed a deal with Italian energy giant Eni to deploy its floating liquefaction technology off the coast of Congo for a period of 20 years.
NFE and Eni Congo signed a heads of agreement for the deployment of NFE’s liquefaction technology and to negotiate a long-term tolling agreement, according to a statement on Monday.
Also, NFE will deploy 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.
The company’s liquefaction design pairs the “latest advancements” in modular, midsize liquefaction technology with jack up rigs or similar floating infrastructure to enable a “much lower cost and faster deployment schedule than today’s floating liquefaction vessels.”
Long-term tolling deal
Besides the tech, the deal provides a frame for negotiating a long-term tolling agreement between NFE and Eni for the full capacity of the facility.
Wes Edens-led NFE said it would buy about 1.2 million gallons of LNG per day pursuant to a 20-year FOB sales and purchase agreement while the production would start in the second quarter of 2023.
The US firm said the finalization and execution of definitive agreements remain subject to negotiation and a set of conditions. NFE expects these conditions to complete by the end of March 2022.
Edens said this, “landmark partnership is a major milestone for our Fast LNG business.”
“With production beginning next year, we believe that this is just the first of many deployments of this game-changing technology around the world,” he said.
Eni recently said it would launch the Congo FLNG project in 2023. The firm is fast-tracking a gas valorization development in the African country to deliver gas for both domestic power generation and LNG export.
The first phase includes a near-shore concept while the second phase would have an offshore concept, according to Eni. Together, they will reach nearly 2 million tonnes per year of liquefaction capacity at plateau.
The project will get associated gas from Eni’s Marine XII block offshore Congo.