Mozambique has finally shipped its first cargo for a floating LNG (FLNG) production unit, Italian energy giant Eni confirmed Sunday.
The part-cargo was loaded aboard the BP-controlled 173,644-cbm LNG carrier British Sponsor (built 2019) from Eni’s 3.4-million tonnes per annum Coral-Sul FLNG.
BP is the sole offtaker from Coral-Sul FLNG, which is monetising gas in the Coral South field in Area 4 off Mozambique. The company signed a long-term offtake contract in October 2016 for a 20-year period.
The energy major highlighted that this is the first FLNG to be deployed in deep water off the African continent.
TradeWinds first reported that the LNG carrier had arrived off the FLNG unit in mid-October.
There have been several false starts over the past few months on exports, with LNG carriers flagged up to lift shipments but then moving off.
The first cargo is bound for Europe, Mozambique’s oil and gas regulator said last month, reported Bloomberg.
Towage specialist Smit Lamnalco is supply the marine services to Coral FLNG for the next 10 years.
BP executive vice president trading and shipping 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,” Howle said.
BP said it is continuing to look for opportunities across the gas value chain as it sees LNG as “an essential part of the energy transition” with the product playing a “key role supporting energy security”.
The company is aiming to extend its LNG portfolio to 30 million tonnes by 2030 and said the Mozambique supply enhances its ability to delivery to markets globally.
Eni chief executive Claudio Descalzi said: “The first shipment of LNG from Coral South project, and from Mozambique, is a new and significant step forward in Eni’s strategy to leverage gas as a source that can contribute in a significant way to Europe’s energy security, also through the increasing diversification of supplies, while also supporting a just and sustainable transition,” said Eni chief executive Claudio Descalzi.
The Italian energy company said Coral South is a “landmark project” for the industry and firmly places Mozambique onto the global LNG stage.
“The project, sanctioned in 2017, comes on stream after just five years, in line with the initial budget and schedule, despite the disruptions caused by the Covid pandemic,” the company said.
Coral Sul FLNG is monetising gas from the 450bn cubic meters Coral reservoir where Mozambique Rovuma Venture (MRV), a joint venture owned by Eni, ExxonMobil and CNPC hold a 70% interest in the Area 4 exploration and production concession contract.
In addition to MRV, the other shareholders in Area 4 are Galp, KOGAS and Mozambique state entity ENH, each with a 10% participation interest.
Separately TotalEnergies continues to deliberate on whether to move forward with its planned onshore liquefaction plant in Mozambique which has been put on ice due to insurgents attacks in the region.
ExxonMobil is also pursuing its own FLNG development offshore Mozambique.
