Italian energy group Eni and its partners have reached a Yen 700bn (US$6.33bn) agreement with a consortium including JGC, Technip and Samsung Heavy Industries to build a floating liquefied natural gas (FLNG) facility off the coast of Mozambique. The companies will handle planning, procuring materials for and building the plant.
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 (estimated to hold 2,400 bcm of gas) 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 3.4 Mt/year of LNG. The Final Investment Decision on the project is pending. LNG production could start in the early 2020s and the entire LNG production would be sold to BP over 20 years.