BP has signed an agreement with Eni-operated Area 4 concession partners to purchase 100% of the output from Coral South floating liquefied natural gas (FLNG) project in offshore Mozambique.
The concession partners are Eni East Africa (EEA), Galp Energia (Galp), Kogas and Empresa Nactional de Hidrocarbonetos (ENH), which each hold a 10% stake.
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Eni operates Area 4 with a 50% indirect interest, owned through EEA, which holds a 70% stake in the concession.
CNPC owns a 20% indirect interest in Area 4 through EEA.
Operated by EEA, the Coral South FLNG facility is expected to have an output capacity of more than 3.3 million tonnes per annum.
Under the agreement, which has been approved by the government of Mozambique, BP will purchase LNG for a period of 20 years.
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By GlobalDataThe LNG will be used by BP to meet its supply commitments globally.
The agreement is conditional on the final investment decision (FID) being made by partners for the project, which is currently expected by the year-end.
BP supply and trading business chief executive Paul Reed said: “BP is pleased to play a key role in enabling Mozambique to be an LNG exporting country.
“The agreement adds to the diversity of our natural gas portfolio beyond the end of the decade, further enhancing our ability to meet the needs of our customers.”
BP is involved in LNG projects in Australia, UAE, Indonesia, Egypt, Trinidad, and Angola.
Image: BP and Area 4 partners signing LNG sale and purchase agreement. Photo: courtesy of BP plc.
