The Mozambique Government has reportedly approved Eni’s Coral Norte floating liquefied natural gas (FLNG) development plan.
This approval paves the way for a final investment decision (FID) on the project, which aims to produce 3.55 million tonnes per annum (mtpa) of LNG over a period of 30 years from the Rovuma Basin offshore Mozambique, reported Reuters.
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Eni’s first FLNG plant, Coral South FLNG, commenced gas exports to Europe in 2022.
Coral South FLNG has a gas liquefaction capacity of 3.4mtpa and will produce 450 billion cubic metres of gas from the Coral reservoir in the Rovuma Basin.
It is the first FLNG facility deployed in deep waters off the African continent.
Coral South is also the inaugural project to capitalise on the 85 trillion cubic feet of gas discovered by Eni in Area 4 of the Rovuma Basin.
Additionally, Eni, as the delegated operator of Area 4 in the Rovuma Basin, celebrated the shipment of the 100th cargo of LNG from Coral South FLNG.
The Area 4 operation is managed by Mozambique Rovuma Venture, a joint venture owned by Eni, ExxonMobil and China National Petroleum Corporation, holding a 70% interest in the Area 4 exploration and production concession.
Other shareholders in Area 4 include ADNOC’s subsidiary XRG, KOGAS and ENH, each with a 10% participation interest.
In a related development, the US Export-Import Bank has sanctioned a $5bn loan to support the Mozambique LNG project led by TotalEnergies.
This decision marks progress towards resuming the $20bn venture, which has been on hold since 2021 due to security concerns in the Cabo Delgado province.
The project awaits reapproval of loans from the UK and Dutch export credit agencies.
