Gas Demand Spike in Europe Prompts Eni to Consider a Second Floating LNG Plant off Mozambique Coast

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  • Mozambique’s Noticias reports Italian oil major Eni and its partners in Area 4 of the Rovuma sedimentary basin in Cabo Delgado, are considering the possibility of positioning a second floating platform for the exploitation of the immense reserves of natural gas there. 

A few days ago, the Empresa Nacional de Hidrocarbonetos (ENH), with a 10 percent stake in the share capital of the Coral Sul FLNG project spearheaded by the Italian company Eni, observed that the bloc’s partners were aware of the increase in demand for gas in Europe and that it should position itself to take advantage of these market dynamics. This is a possibility that, as it is still at an embryonic stage, has not yet been shared with the government for the purposes of assessment.

Related news: Eni’s Coral Sun floating LNG plant draws first hydrocarbons (gas)

On being asked, the Chairman of the Board of Directors of the National Petroleum Institute (INP), Nazário Bangalane, told ‘Noticias’ that his institution has not yet received the development plan for the northern part of the area operated by Eni.

“What I can say at this point is that Eni has not yet presented the development plan for the northern part of Area 4 of the Rovuma basin. The information we have is that they are working to present this plan in the future,” the INP chairman said.

The Coral Sul gas extraction and liquefaction platform is the first in deep water, and the first project of its kind developed in Africa.
Image credit: ENI

Meanwhile, in statements cited by the Information from Mozambique (AIM) news agency, the commercial executive director of ENH, Pascoal Mocumbi Jr, admits the possibility of moving towards the second floating platform to increase gas production capacity in the Rovuma basin.

“With the war in Ukraine, European demand for gas has increased. One way to speed delivery of our gas would be a second floating platform similar to the one already here in Mozambique,” he said.

Speaking a few days ago in Maputo, Pascoal Mocumbi Jr said that it would take three years to build a second floating platform, two less than the time it took to build the Coral Sul FNLG platform.

Mocumbi Jr. assured that, given the size of its gas reserves, Mozambique was automatically an alternative to meet current demand, and the faster it managed to get its gas to market, the greater the possibility of taking advantage of the current crisis caused by the Russia-Ukraine conflict.

The hydrocarbon will be exported to different markets around the world, through a contract with the British company BP, contributing to satisfying world demand for natural gas. It is expected that the resulting revenues will be used to implement other structuring projects in Mozambique.

Author: Bryan Groenendaal

Source: Noticias


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