ENI seeking funding for FLNG vessel

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ENI seeking funding for FLNG vessel

7:43 CAT | 29 Sep 2016

In File Club of Mozambique

The Italian energy company ENI is seeking funding for the construction of the floating liquefied natural gas (FLNG) vessel which will supply the world’s markets with gas from Offshore Area Four in the Rovuma basin off the northern coast of Mozambique.

According to a report by the news agency Reuters, the company has held a series of meetings with banks in London over the last week to put forward its plans for the multi-billion dollar project. The report states that the banks are likely to reply with their terms for the financing within a month, enabling ENI to make its Final Investment Decision by the end of this year.

Meanwhile, reports from South Korea state that Samsung Heavy Industries is expected to be awarded contracts worth over three billion US dollars to build the FLNG plant. Sources told Maeil Business News Korea that Samsung has been arranging finance and accountancy services for its end of the project.

In July the South Korean news agency Yonhap reported that a consortium composed of the French company Technip, JGC (formerly known as the Japan Gasoline Company) and Samsung Heavy Industries was likely to get the contract for the FLNG which totals 5.4 billion dollars.

ENI is the operator of Offshore Area Four, which is estimated to contain 85 trillion cubic feet of gas. It controls a 50 per cent indirect interest 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.

Source: AIM