Eni considers own Mozambique LNG Plant to secure 2018 first shipment

Eni may run its own fast track on Mozambique LNG

The Italian national oil company Eni and its partners China National Petroleum Corporation (CNPC or PetroChina), Kogas from South Korea, Galp Energia from Portugal and Mozambique Emprecia Nacional de Hidrocarbonetos (ENH)  are evaluating alternative solutions to develop its Mozambique liquefied natural gas (LNG) project on fast track in order to load the first shipments in 2018.

Together with the Texas-based Anadarko Petroleum Corporation (Anadarko), Eni managed to unveil the gigantic resources of natural gas lying in the deep offshore water Mozambique.

Eni-PetroChina-Koga-Galp-ENH_Quionga_Mozambique_LNG_MapWhile Anadarko was leading the exploration on the Area-1 of the Rovuma Basin, Eni was confirming the potential of the region in the Area-4.

On the Area-1, Anadarko expect to accumulate 100 trillion cubic feet (tcf) of natural gas and Eni more than 70 tcf.

Geographically, Mozambique is perfectly located on the Africa East Coast to export LNG to Asia

In that perspective, the Mozambique Government motivated the two teams leaders Anadarko and Eni to sign, end of 2012, a memorandum of understanding (MOU) to develop jointly the onshore part of the Mozambique LNG projects and coordinate their efforts regarding the offshore part where fields are linked between the Area-1 and Area-4.

As a result, Eni and Anadarko have started the feasibility study to build the Afungi LNG Park in the Cabo Delgado Province on the northeast coast of Mozambique.

According to the reserves consolidated by Eni and Anadarko, this onshore of the Mozambique LNG project is planned to be developed jointly in five different phases of two trains per each phase.

Since the feasibility study has been completed for this onshore Mozambique LNG project, three teams of engineering companies are bidding for the front end engineering and design (FEED) contract.

Eni and Anadarko to agree on Afungi LNG operator

Eni and Anadarko had decided to call for tender on the base of a competitive FEED in order to save time on the engineering, procurement and construction (EPC) phase of the project with already the target to ship first LNGto Asia in 2018.

If it is clear that Anadarko is the operator of the Area-1 and Eni of the Area-4, the question is still pending on the name of the operator of the jointly developed Afungi LNG Park.

Anadarko_Eni_Mozambique_LNG_Afungi_LNG_ParkThis question will need to be answered before the final investment decision (FID) required to sanction the competitive FEED to the winning engineering companies team.

On Area-1, the Anadarko holds 36.5% with Mitsui E&P 20%, BPRL Ventures Mozambique 10%, Videocon 10%, PTTEP 8.5% and ENH 15%.

On Area-4, the Italian leader Eni concentrates 50% through the joint venture Eni East Africa by which PetroChina holds 20%, with the remaining shares being split between Kogas 10%, Galp Energia 10%, and ENH 10%.

With their deep pockets and 70% interests in the project, Eni and PetroChina do not intend to lose time in the development of Mozambique LNG project.

In the same way as they are studying a floating liquefied natural gas (FLNG) solution to speed up the development of the offshore part in Mamba , they are now considering to build their own LNG plant in Quionga, close to Tanzania boarder.

In respect with the reserves in places in the Rovuma basin, Mozambique holds enough gas to feed the Afungi LNG Park, Mamba FLNG and an additional Quionga LNG plant, that would secure first LNG shipment for Eni and PetroChina from Mozambique LNG by 2018.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

Scroll to Top