Mozambique: Coral Sul project puts country on LNG map – Galp CEO

Login

Register

http://www.clubofmozambique.com/

Mozambique: Coral Sul project puts country on LNG map – Galp CEO

3:50 CAT | 24 Oct 2022

File photo: Lusa

The chief executive of Portuguese oil company Galp said on Monday that the Coral Sul project in Mozambique would put that country “on the map of liquefied natural gas, as an important global supplier,” complementing the US and Qatar.

“[The] Coral Sul project will put Mozambique on the LNG [liquefied natural gas] map as a major global supplier. LNG remains a crucial part of energy supply, now and in the future, and Mozambique will play a central role, complementing the United States and Qatar,” Andy Brown says in a video about the results of the third quarter and the first nine months of the year at the Portuguese oil company.

The Coral Sul project consists of the construction of a floating platform for the liquefaction of natural gas (FLNG), the first development project related to the discoveries made in Area 4 in Mozambique’s Rovuma basin.

Galp holds a 10% stake in the consortium for the development of Area 4, while Eni has an indirect 50% interest through Eni East Africa, which holds a 70% interest in Area 4.

Kogas and ENH each hold a 10% stake in the project, while China National Petroleum Corporation (CNPC) holds an indirect 20% stake through Eni East Africa.

In the same video, Andy Brown reiterates that the company is finding alternative and competitive sources of natural gas, although the impact of the floods in Nigeria on contractual deliveries is not yet known.

“While it is still uncertain what the impact of this event [floods in Nigeria] will be, having pre-sold volumes, we are actively finding competitive alternative sources of gas,” said the GALP executive chairman, who leaves at the end of the year.

Last week, Galp informed the Securities Market Commission (CMVM) that it had received from Nigeria LNG, Portugal’s main supplier of natural gas, “a warning of force majeure based on the widespread floods that are being experienced in Nigeria, causing a substantial reduction in the production and supply of liquefied natural gas”.

Andy Brown said, however, that he expects “gas supplies and trade contributions for 2023 to improve significantly.”

Galp today reported a profit of €608 million in the first nine months of the year, which represents an increase of 86% compared to the same period last year, and 187 million in the third quarter, an increase of 16%.

“I am confident that the journey we have taken to regenerate the future together will continue to yield strong results and that the quality of Galp’s team and assets will allow us to grow, leading the sector in the energy transition. It has been a privilege to be part of this journey as CEO of Galp,” Brown concluded.

Source: Lusa