Galp approves investment plan for Coral South LNG project – Mozambique

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Galp approves investment plan for Coral South LNG project – Mozambique

12:07 CAT | 19 Dec 2016

Galp has approved an investment plan for the Coral South project in Mozambique’s Rovuma Basin.

In a statement sent to the Securities and Exchange Commission (CMVM), Galp says that “its board of directors approved the investment in the Coral South area, the first development project related to the discoveries made in Area 4 in the Rovuma basin in Mozambique”.

The approval “constitutes a relevant milestone for the final decision to invest in the project, which, in addition to requiring the conclusion and signature of all relevant documentation, is dependent on the approval of the project by the remaining partners in the consortium, the conclusion of the financing of the project and of the approval of the conditions related to the financing of the corresponding participation of the National Hydrocarbons Company (ENH) by the Mozambican Government”.

Galp explains that the “Coral South project consists of the construction of a floating unit for the liquefaction of natural gas (FLNG) with an annual capacity of more than 3.3 million tons from six wells”.

The company points out that in October the consortium signed an agreement sell all the LNG produced by the Coral Sul FLNG for a period of 20 years to BP.

“Due to the size and quality of resources in the Rovuma basin, its location and potential economies of scale, it is expected to play a key role in the natural gas industry as well as in the transformation of Mozambique’s economic context,” the statement goes on to say.

Galp holds a 10 percent stake in the consortium for the development of Area 4. Italian ENI is the operator with an indirect 50 percent stake through ENI East Africa, which holds a 70 percent stake.

Source: Dinheiro Digital with Lusa