According to the long-term contract signed in 2016, BP will purchase 100% of the LNG produced from the Coral Sul FLNG, which is expected to produce 450 billion cubic metres of natural gas.
The 20-year offtake contract was signed with the Coral sellers comprising Mozambique Rovuma Venture , a joint venture between ExxonMobil, Eni, CNPC, GALP, KOGAS, and Mozambique state entity Empresa Nacional de Hidrocarbonetos (ENH ).
The Coral Sul FLNG facility is said to be Mozambique’s first LNG project.
In a press statement, BP said: “As BP aims for an LNG portfolio of 30 million tonnes by 2030, the new Mozambique supply source expands BP’s flexible, high-quality LNG portfolio and further enhances the company’s capability to deliver LNG to markets globally.”
Located at a water depth of nearly 2,000m, the FLNG facility is equipped to liquefy 3.4 million metric tonnes per annum (Mmtpa) of gas. It produces through six subsea wells.
BP trading and shipping executive vice-president Carol Howle said: “The start of production from the Coral Sul FLNG facility represents a major milestone for Mozambique, the project partners, and BP as the LNG buyer.
“As the world seeks secure, affordable, and lower carbon energy, global demand for LNG is expected to continue to grow. This new supply source further enhances BP’s capability to deliver LNG to markets across the world and we look forward to continuing our close collaboration with all those involved in the project.”
BP recently reported underlying profits of $8.2bn for the third quarter of 2022, making it one of the company’s most profitable years ever.