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Eni mulls Floating LNG alternative in Mozambique Area 4

Eni to consider FLNG to speed up Mozambique LNG

The Italian major company Eni and its partners, China National Petroleum Corporation (CNPC or PetroChina), the local Emprecia Nacional de Hidrocarbonetos (ENH), Kogas from South Korea and Galp Energia from Portugal, are considering to use floating liquefied natural gas (FLNG) vessel to speed up the development of the Area 4 of the Rovuma basin, offshore Mozambique.

Mozambique, as well as Tanzania, have emerged these last two years as potential key players on the export market of liquefied natural gas (LNG) mainly to Asia. 

Eni_Mozambique_FLNG_mapUnfortunately to hold large reserves of gas is no longer enough for a country to become a significant  exporter since the USA have decided to allow the construction of LNG export terminals to absorb their current shale gas glut.

The potential exporting country needs also to find buyers of this gas with long term contracts to secure the financing.

In that respect Mozambique and Tanzania are geographically well positioned to export to Asia as long as their export projects can take shape before all the other projects in the world such as in Australia, Canada, Russia or USA.

For harmonization purpose, the Mozambique Government invited Eni and its partners to team up with Anadarko Mozambique Area-1 (AMA1) to develop and operate jointly a large onshore LNG plant.

Although Eni and Anadarko will cooperate on the onshore Mozambique LNG project, the both teams will develop the offshore part on their own in respect with the reserves and technical requirements of their respective blocks in the Area-4 and Area-1.

Saipem to propose Eni ready-to-go FLNG design 

According to the Memorandum of Understanding (MOU) signed in 2012, Eni and Anadarko agreed to build in phases up to 10 LNG trains.

The onshore Mozambique LNG at Afungi, in the Cabo Delgado Province in the northeast of Mozambique.

Eni_Saipem-Chiyoda_Mozambique_FLNGWith 5 million tonnes per year (t/y) per LNG train, The Mozambique Government expects the onshore Mozambique LNG project to create jobs and added value not only during the construction phase but also in normal operations.

To require $15 billion capital expenditure for the first phase of two LNG trains, the onshore Mozambique LNG project is still at competitive front end engineering and design stage (FEED) between three consortia so that Eni and Anadarko are targeting the first production to start in 2018.

In parallel Saipem, in joint venture with Chiyoda and Hyundai Heavy Industries (HHI) has been awarded the FEED contract to design the first ExxonMobil FLNG.

Considering the size of ExxonMobilFLNG and the connection between Saipem and its head company, Eni, this concept would fit perfectly with Mozambique FLNG requirements.

At the stage of the on going design of Saipem FLNG concept, Eni could expect to start first shipment from Mozambique FLNG in 2017.

Even though the Mozambique Government is giving the priority to the onshore Mozambique LNG project, Eni is preparing with its partners, PetroChina, Galp, Kogas and ENH, a Mozambique FLNG alternative that could secure the export contracts.

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

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