Mozambique gears up for first LNG export from Eni’s Coral South project

The first cargo of LNG from Mozambique’s 3.4 million tpa floating LNG vessel Coral Sul is set to sail in the coming days, marking a milestone for the southeastern African country.

The UK sponsor tanker is currently loading cargo at the FLNG facility, according to data from S&P Global Commodity Insights’ Platts cFlow vessel tracking tool.

The Italian Eni, the main operator of the Coral South project, confirmed this during a recent analyst call.

“As you know, we have produced the first LNG in Coral and we are completing the ramp-up to achieve the first upcoming cargo,” said Guido Brusco, Chief Operating Officer of Eni’s Natural Resources Division, during an analyst call Oct. 16. 28.

Coral South – which moved to a final investment decision in 2017 – is based on the 450 billion m3 of resources in the Coral field in Zone 4 offshore Mozambique.

Eni’s upstream partners in Zone 4 are ExxonMobil, China’s CNPC, Portugal’s Galp, South Korea’s Kogas and Mozambique’s ENH.

BP will take the entire volume of LNG produced at Coral South under an initial 20-year contract that was signed with Eni and the Zone 4 partners in 2016.

More than 30 million tonnes/year of LNG production capacity is being considered in Mozambique, but the nascent LNG industry has been held back by the growing Islamist insurgency that began in October 2017.

The Coral South LNG project is one of three LNG developments in Mozambique, but it is the only offshore project, which means it has been protected from the insurgency.

In late March 2021, dozens of people were killed in attacks on the city of Palma, prompting France’s TotalEnergies in April to declare force majeure over work at its 13-year-old Mozambique LNG project, 1 million tons / year nearby.

The 15.2 million tpy Rovuma LNG project led by ExxonMobil, meanwhile, remains on hold with no final investment decision yet.

Both are located in northeastern Mozambique, near the city of Palma and about 60 km from the port town of Mocimboa da Praia, which until recently was occupied by insurgents.
Source: Platts

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