Breaking: Mozambique, Eni sign 20-year LNG sales agreement with BP

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Breaking: Mozambique, Eni sign 20-year LNG sales agreement with BP

5:16 CAT | 04 Oct 2016

Reuters / The logo of BP is on display at a petrol station in Moscow, Russia, July 4, 2016.

Mozambique and Italy’s Eni have signed a 20-year deal to sell BP liquefied natural gas (LNG), an important step in getting a long-delayed project off the ground, state energy firm ENH said on Tuesday.

Eni and Mozambique should by the end of this year reach a final investment decision on a project to build a floating offshore platform with a capacity to produce 3.3 million tonnes a year of LNG from gas in the Coral South field, ENH said.

The Coral field is part of the huge reserves discovered six years ago in the Area 4 concession off the Mozambican coast.

“Through this agreement, the partners of Area 4 have achieved another important milestone,” ENH said in a statement.

Eni met with bankers in London last month about project financing to develop the Coral field. Giant gas reserves offer Mozambique an opportunity to transform itself from one of the world’s poorest countries into a middle-income state and a major global LNG exporter.

Source: Reuters