Mozambique's first LNG exports to Europe seen by early November
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Loading... - Sandra Afful
- 26 Oct 2022
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Mozambique expects to ship its first liquefied natural gas (LNG) exports to Europe from the Eni-operated Coral Sul floating plant later this month or early November, petroleum regulator INP said on Friday in a supply boost for the energy-starved region.
BP’s BP.L LNG tanker, British Sponsor, has already arrived offshore northern Mozambique, said Welligence Energy Analytics in a note, with all of Coral Sul’s annual gas output of 3.4 million tonnes contracted to BP for 20 years on a free-on-board basis.
“Regarding the LNG export, it will be for European markets since BP is committed to take the gas resources to Europe,” said the National Petroleum Institute (INP) in an emailed response to Reuters.
The new LNG cargoes will help alleviate a tight global LNG market and gas shortages in Europe as winter looms following Moscow’s February invasion of Ukraine and Russia’s later decision to curb gas pipeline supplies into major European Union economies.
As part of its exploration activity offshore Mozambique, Eni discovered Coral South gas field in 2012 and took its final investment decision in 2017, pledging to start producing gas using a floating LNG plant after five years.
Thanks to a fast-track strategy led by CEO Claudio Descalzi, Eni has been able to stick to its original schedule despite the pandemic and supply chain issues.
The exports from Mozambique, which neighbours South Africa, will help transform its economy as billions of dollars pour into the country to develop massive offshore gas fields in its deepwater Rovuma basin. Read More...
