Mozambique achieves five million tonnes of deep water gas production

Italian oil company Eni announced this Friday that it has achieved production of five million tons of liquefied natural gas (LNG) from the ultra-deep waters of Zone 4 in the Rovuma Basin in Mozambique.

“This is a significant milestone for the project and represents not only a major achievement at a technical and operational level, but also a testament to the dedication, commitment and cooperation of the entire team and partners,” said the oil company, which operates Area 4 and also includes ExxonMobil, China National Petroleum Corporation (CNPC), GALP, KOGAS and ENH as partners.

LNG production in the area is carried out by the Coral Sul FLNG platform, which began operations in October 2022 and has exported 70 LNG cargoes and 10 condensate cargoes to date, “significantly contributing to the country’s economic growth,” Eni said.

The oil company adds that Coral Sul “is a benchmark project for the industry and has placed Mozambique among the world’s LNG producers, laying the foundation for transformational change in the country” by utilising gas resources “that at the same time contribute to a just and sustainable energy transition.”

“This achievement reinforces our commitment to delivering exceptional value to the country. We will continue to work with our partners and the Mozambican government to ensure that Mozambique’s vast gas resources are assessed through the development of additional gas projects,” he assured Marika Calabrese, CEO of Eni Rovuma Basin, according to the Italian oil company.

The Coral Sul FLNG platform has a liquefaction capacity of 3.4 million tonnes per annum (MTPA) and will enable the production of 450 billion cubic metres of gas from the “massive Coral reservoir” located offshore the Rovuma basin.

It is the first floating LNG unit “ever installed in the deep waters of the African continent” and is “conceived as a pioneering project using advanced technologies for the ‘offshore’ environment with a focus on energy efficiency at the highest level in the LNG sector.”

Eni, the concessionaire for Rovuma’s Zone 4, previously announced that it is currently developing a second floating platform, a replica of the first and named Coral Norte, to increase gas production.

A company source explained to Luse at the end of October last year that the plan involved, among other things, the acquisition of a second FNLG platform for the Coral Norte area, identical to the one that produces gas in the Coral Sul area, already under construction in South Korea.

“Eni is working on the development of Coral Norte through a second FLNG in Mozambique, using the experience and lessons learned from Coral Sul FLNG, including those related to costs and implementation time,” added the same source from the oil company, the delegated operator of this consortium.

A previously published document prepared by Mozambican firm Consultec for oil company Eni indicated that the investment involved would be worth seven billion dollars (6.3 billion euros), subject to approval by the Mozambican government.

If the schedule goes as planned, the platform will begin production in the second half of 2027, meaning it could start even earlier than land-based projects, which are dependent on the security implications of the armed insurgency in Cabo Delgado.

Coral Norte will be located 10km north of the Coral Sul field, which began production in November last year, making it the first project to exploit the large reserves in the Rovuma basin.