Italian energy group Eni has authorised the investment for the first phase of the development of the Coral discovery (Coral South project), located in the deep waters of the Rovuma Basin (Area 4), offshore Mozambique.
The Coral South FLNG project is developed by the Area 4 partners, namely Eni with 50%, CNPC with 20%, Galp Energia, Kogas and Empresa Nacional de Hidrocarbonetos (ENH) with 10% each. The Coral field, discovered in May 2012 and outlined in 2013, is entirely located within Area 4 and contains about 450 bcm of gas in place. The project includes the construction of 6 subsea wells connected to a floating LNG (FLNG) plant, able to produce more than 3.3 Mt/year of LNG. The Plan of Development was already approved by the Government of Mozambique in February 2016. LNG production could start as early as 2019 and the entire LNG production would be sold to BP over 20 years.
In October 2016, partners signed a binding LNG sale agreement with BP for the sale of LNG from the proposed FLNG facility, paving the way for the development of the 2,400 bcm discovered in Area 4. The new investment commitment by Eni is another step towards the Final Investment Decision on the project, which will turn effective once all Area 4 partners have approved it and the project financing, which is currently being finalized, has been underwritten.
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