Mozambique: Second FLNG platform still undergoing study – ENH

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Mozambique: Second FLNG platform still undergoing study – ENH

3:39 CAT | 09 Aug 2022

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It has been reported that Eni, the Italian major at the head of the Coral Sul project is considering implementing a second floating natural gas production unit (FLNG) in the Rovuma Basin.

Conceptual studies of the project are currently underway, according to the Empresa Nacional de Hidrocarbonetos (ENH).

“The partners – in this case, the Italians – have been talking about the possibility of bringing a new platform, but this is still at the conceptual study stage – there is no approval,” says ENH chairman Estevão Pale.

“These are just ideas that we are studying, analysing the projects and ascertaining the pros and cons. Also, from our side, we have to see what benefits will result. Of course, there are opportunities: the market has opened up because of the war situation in Ukraine, there is a need for gas for Europe, and we think that Mozambique should take advantage of this opportunity,” Estevão Pale explains, quoted by O País.

With regard to ongoing projects, Pale says that the country’s biggest problem is the search for cheaper funding to independently ensure ENH’s participation in the projects.

“As you know, ENH participates in Area 4 with 10% and in Area 1 with 15% and, at the moment, it is being carried on the partners’ shoulders. Of course, this financing is quite expensive and additional projects mean additional effort for ENH, in terms of looking for alternative sources to be able to participate in similar projects,” the ENH chairman stressed.

Estevão Pale notes that the projects currently underway in the Rovuma Basin exploit less than 10% of the reserves already approved.

The first liquefied natural gas from the Rovuma Basin will start being exported by Coral-Sul, the project led by Eni, in October of this year.

Source: Diário Económico