Italy’s Eni and Mozambique have signed a 20-year deal with UK-based BP for the supply of liquefied natural gas from the Coral FLNG project, moving the project further forward.
The final investment decision for the Coral FLNG project is expected to be reached by the end of the year, Eni said in its statement, noting that the deal has already been approved by the Government of Mozambique and is conditional on the final investment decision (FID) of the whole project which is expected within 2016.
BP, through its unit, BP Poseidon has booked the total capacity that will be produced from the Coral South Floating LNG facility, which will have a capacity above 3.3 million tons per annum of LNG.
Eni secured the approval from the Mozambique government for the development plan of the Coral FLNG project that is expected to produce around 3.4 mtpa, in January this year.
The approval relates to the first phase of development of 5 trillion cubic feet of gas in the Coral discovery, located in the Area 4 permit.
The giant discovery, located approximately 80 kilometers offshore of the Palma bay in the northern province of Cabo Delgado, is estimated to contain around 16 trillion cubic feet (TCF) of gas in place.
The plan of development, the very first one to be approved in the Rovuma Basin where 85 Tcf of gas have been discovered, foresees the drilling and completion of 6 subsea wells and the construction and installation of a floating LNG facility, Eni said after receiving the approval.
Eni is the operator of Area 4 with a 50 percent indirect interest, owned through Eni East Africa (EEA), which holds a 70 percent stake of Area 4.
The other partners are Galp Energia, Kogas and ENH with a 10 percent stake each. CNPC owns a 20 percent indirect interest in Area 4 through Eni East Africa.
LNG World News Staff