Technip Energies CEO: Eni’s Coral Norte FLNG has ‘potential’ for FID in 2024

Eni’s second floating LNG production project in Mozambique has “potential” for a final investment decision in 2024, according to the chief of LNG engineering giant Technip Energies, Arnaud Pieton.

Back in November 2022, the 3.4 mtpa Coral Sul (Coral South) FLNG in Mozambique shipped its first cargo of LNG, adding Mozambique to the LNG producing countries.

The TJS consortium, consisting of Technip Energies, JGC, and Samsung Heavy, built the unit for Eni, the first floating LNG facility ever to be deployed in the deep waters of the African continent.

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

The partners are now working on the second FLNG project offshore Mozambique, called Coral Norte (Coral North).

Pieton told analysts during the Technip Energies 2023 earnings conference call on Thursday that Coral Norte would be a replica of Coral South, which has been a “great success for us and for Eni”.

“We follow very closely, and we are in close contact with Eni,” he said.

If Eni decides to take FID 2024, it would most likely be “towards the end of the year,” Pieton said.

“The work for us is progressing in the sense of early engineering work and preparing the groundwork for being able to hit the ground running at the time of the FID,” he said.

Qatar’s giant LNG expansion

In 2023, Technip Energies secured 10 billion euros ($10.8 billion) of order intake.

In May last year, Technip Energies and and Consolidated Contractors Company won the NFS LNG contract from QatarEnergy worth about $10 billion to build two “mega” LNG trains with a capacity of 8 mtpa each.

Technip and Chiyoda previously won the EPC award for QatarEnergy’s North Field East project which includes building four trains with a capacity of 8 mtpa in the Ras Laffan complex.

QatarEnergy just announced the third North Field expansion phase, called the North Field West project, with a capacity of 16 mtpa.

Asked about whether Technip Energies could achieve order intake of 10 billion euros in 2024 and in 2025, given the set of opportunity for projects such as Adnoc’s Ruwais LNG in the UAE and the third expansion in Qatar, Pieton said the potential for reaching 10 billion euros was there prior to the US pause on non-FTA LNG permits.

“Now, I’m not sure we will reach the 10 billion euros, maybe not, but I’m very confident that we can actually exceed a book-to-build of one for 2024 and 2025 based on what is out there in the pipeline,” he said.

Pieton also touched upon QatarEnergy’s new North Field West project.

“We are not currently active on NFW. This would be way premature. QatarEnergy made an announcement and I would say it is fair to believe that we will start on the prospect,” he said.

“We are eager to find out more and eager to engage. Of course we will be interested, but we know that our client is also well known for keeping things competitive. So very strong interest and of course well positioned, but something that is a thing of the future in 2025,” Pieton said.

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