Mozambique’s ENH approves US$800 million investment plan in Coral South LNG project

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Mozambique’s ENH approves US$800 million investment plan in Coral South LNG project

9:08 CAT | 23 Nov 2016

File photo ? ENH chairman Omar Mitha

The Board of Directors of Mozambique’s National Hydrocarbon Company (ENH) has approved the investment plan for the development of the Coral South gas field in Area Four of the Rovuma Basin, off the coast of the northern province of Cabo Delgado.

The decision was taken at a Board meeting on 16 November, but was only made public on Tuesday, the day after the Chief Executive Officer of the Italian energy company ENI, Claudio Descalzi, confirmed to Prime Minister Carlos Agostinho do Rosario that investment of ten billion US dollars in Coral South will go ahead.

ENI is the operator of Area Four. In addition to ENH, its other partners are the China National Petroleum Corporation (CNPC), Galp Energia of Portugal and Kogas of South Korea.

Cited in the Tuesday release, ENH Chairperson Omar Mitha said the ENH approval of the investment plan is a fundamental step in the process leading to the approval of the Final Investment Decision, followed by the building of the floating liquefied natural gas facility (FLNG), where the Coral South gas will be processed.

After his meeting with Rosario, Descalzi told reporters that, as soon as the other partners give the green light, development of the Coral South field will press ahead.

According to ENH, during the exploratory phase the partners in the consortium invested about 2.8 billion dollars. A further eight billion will now be invested in drilling six subsea wells and connecting them to the FLNG. Since ENH has a ten per cent holding in Area Four, it must contribute 800 milliom dollars.

ENH believes that the project could create 820 jobs, 90 per cent of which will be filled by Mozambicans. When the FLNG is functioning it is expected to produce over 3.3 million tnnes of liquefied natural gas a year.

Source: AIM