Mozambique: Private sector expands debate towards just energy transition
The Italian hydrocarbon company ENI on Friday announced that it has authorised the investment for the first phase of the development of the Coral gas field in the Rovuma basin off the northern coast of Mozambique.
This will involve the construction of six subsea wells connected to a floating liquefied natural gas (FLNG) production facility which will supply the world’s markets with over 3.3 million tonnes of LNG per year.
The Coral field is within Rovuma Basin Offshore Area Four, where ENI is the operator. It is estimated to contain 16 trillion cubic feet of gas. All of the gas will be sold to BP under a twenty-year deal signed in October. So far, 85 trillion cubic feet of gas has been discovered in Area Four.
According to ENI, the approval of the investment by ENI’s board of directors is “another fundamental step towards the Final Investment Decision on the project, which will turn effective once all Area Four partners have approved it and the project financing, which is currently being finalised, has been underwritten.
ENI controls a 50 per cent indirect interest in Offshore Area Four owned through ENI-East Africa, which holds 70 per cent of the concession. The other 20 per cent held via ENI-East Africa belongs to the Chinese company CNPC. The other three partners, with ten per cent each, are Kogas of Korea, Galp Energia of Portugal, and Mozambique’s National Hydrocarbon Company, ENH.
ENI is expected to award the contract for the construction of the FLNG vessel to a consortium composed of the French company Technip, JGC (formerly known as the Japan Gasoline Company) and South Korea’s Samsung Heavy Industries. It is estimated that the contract will be worth 5.4 billion US dollars.
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