A major energy project, a developmental prospect for Mozambique. These are the terms used to present Coral South FLNG, the plan for the development and production of the major gas resources discovered by Eni in Area 4 of the large Rovuma Basin in Mozambique. A bet that Eni is pursuing along with its partners CNPC (China), Galp (Portugal), Kogas (South Korea) and Mozambican state-owned company ENH. Despite the challenging price scenario that characterized the period, the project’s launch attests to the quality of the asset and Eni’s technological leadership in the development of deep-water gas fields. A true technological gem, the floating liquefied natural gas (FLNG) and exportation unit will have a capacity of approximately 3.4 Mtpa and will be the first FLNG in both Africa and the third world. The construction of the Coral South FLNG will be financed by Project Finance, covering 60% of the investment. It is the first Project Finance case in the world for a floating liquefaction unit. The financing agreement was signed by 15 leading lenders and guaranteed by five Export Credit agencies.
A resource for the Mozambican people
Speaking at the project’s launch ceremony, on June 1, 2017 in Maputo, Mozambique’s Minister of Mineral Resources and Energy, Leticia Klemens, emphasized that “this event represents the start of a new phase that has long been awaited. In the last few days,” continued the minister “I have had the opportunity to speak with the management of Eni, CNPC, Galp and Kogas, and I gave them our government’s vision, that mineral resources must be used to the benefit of the people of Mozambique, through their local transformation, in order to guarantee added value, with the aim of contributing to the country’s development and industrialization. The Area 4 projects must bring benefits to the country” reiterated Klemens “and, more precisely, achieve universal access to energy by 2030, in order to make the mining and hydrocarbons industry a catalyst for the development of the agricultural, infrastructural and tourism industries, as well as the industry in general, and the creation of technical expertise for the increasing inclusion of local content in the development of capital-intensive businesses”.
A sustainable growth strategy
On that same occasion, the CEO of Eni, Claudio Descalzi, recalled that "the world is moving towards a low-carbon energy mix, and Eni believes that gas is the resource that will form a bridge towards a more sustainable future". "Our ambition” reaffirmed Descalzi “is to become an integrated global player in the gas and LNG sectors, and we will do this together with key partners, such as Mozambique. The Coral South project will provide a reliable source of energy, while, at the same time, contributing to the development of Mozambique. This partnership approach with the countries in which we operate is the foundation on which our sustainable growth strategy is based". The Coral gas field, discovered in May 2012, is entirely located within Area 4 and contains approximately 450 billion cubic meters of gas. In October 2016, Eni and its Area 4 partners signed an agreement with BP for the sale of all volumes of LNG produced by Coral South for a period of over twenty years.