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