Mozambique: 5 million tons of LNG produced in ultra-deep waters

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Mozambique: 5 million tons of LNG produced in ultra-deep waters

1:47 CAT | 23 Aug 2024

File photo:Eni

Italian oil company Eni announced today that it has achieved the production of five million tones of liquefied natural gas (LNG) from the ultra-deep waters of Area 4 in the Rovuma basin in Mozambique.

‘This is a significant milestone for the project, and it represents not only a major technical and operational accomplishment, but also stands as a testament to the dedication, commitment, and collaboration of all the team and stakeholders.,’ announced the oil company, operator of Area 4, which also includes ExxonMobil, China National Petroleum Corporation (CNPC), GALP, KOGAS and ENH as partners.

LNG production from this area has been carried out by the Coral Sul FLNG platform, which began operating in October 2022 and has so far exported 70 shipments of LNG and 10 of condensate, ‘contributing significantly to the country’s economic growth’, says Eni.

Eni adds that Coral Sul ‘is a landmark project for the industry, and it placed Mozambique among the global LNG producing countries, laying the foundation to a transformational change of Mozambique through development of gas resources, while also supporting a just and sustainable energy transition”.

‘This accomplishment reinforces our commitment to delivering outstanding value to the country of Mozambique. We will continue to work with our partners and the Government of Mozambique to ensure a timely valorization of Mozambique’s vast gas resources with additional developments of gas projects,’ said Marica Calabrese, Managing Director of Eni Rovuma Basin, quoted in the same press release from the Italian oil company.

READ: Eni S p A : Coral Sul FLNG achieves 5 million tons of LNG production from offshore Mozambique

Coral Sul FLNG is a platform with a gas liquefaction capacity of 3.4 million tonnes per annum (MTPA). It will produce 450 billion cubic metres of gas from the ‘vast Coral reservoir’, located off the Rovuma basin.

It is the first floating LNG plant ‘ever installed in the deep waters of the African continent’. It has been ‘conceived as a pioneering project with cutting-edge technology for an offshore environment, with a strong focus on energy efficiency, at the highest level of the LNG sector’.

Eni, the concessionaire for Rovuma Area 4, has previously announced that it is developing a second floating platform, a copy of the first called Coral Norte, to increase gas extraction.

A company source explained to Lusa at the end of October last year that this plan involves the acquisition of a second FNLG platform for the North Coral area, identical to the one used to extract gas in the South Coral area, which is already under construction in South Korea.

‘Eni is working towards the development of the North Coral through a second FLNG in Mozambique, taking advantage of the experience and lessons learnt in the South Coral FLNG, including those related to costs and execution time,’ added the same source from the oil company, the delegated operator of that consortium.

A document released earlier, drawn up by the Mozambican firm Consultec for the oil company Eni, points to an investment of seven billion dollars (6.3 billion euros), subject to approval by Mozambique’s government.

If the schedule goes according to plan, the platform will begin production in the second half of 2027, meaning it could start up even before the onshore projects. The onshore projects depend on security implications due to the armed rebellion in Cabo Delgado.

Coral Norte will be stationed 10 kilometres north of Coral Sul, which started production in November last year, making it the first project to take advantage of the large reserves in the Rovuma basin.

Source: Lusa