World Oil

(Bloomberg) — Eni SpA is planning a second liquefied natural gas production vessel offshore Mozambique that could be built in less than four years to help Europe diversify supplies of the fuel, according to a company executive.

Eni plans second LNG platform offshore Mozambique as Europe seeks gas- oil and 360

Source: Reuters

The Italian oil and gas producer’s potential project would complement its $7-billion Coral-Sul FLNG platform moored off Mozambique’s northern coast that’s scheduled to start exporting the fuel this year. If Eni decides to proceed by early 2023, output could begin even before TotalEnergies SE’s $20-billion onshore project that abruptly halted construction last year due to security issues.

European nations are seeking new energy sources after Russia’s invasion of Ukraine, causing gas prices for the bloc to jump more than four times higher than a year ago. For Mozambique, a second floating LNG export platform would help boost gas exports slowed by multiple delays.

“This is a great opportunity, to develop its resources and bring significant revenues,” Guido Brusco, Eni’s chief operating officer of natural resources said in an online interview with Bloomberg last week. “It is also a great opportunity for Europe to diversify their supplies. In this context, a project that could be delivered in less than four years has a tremendous opportunity window.”

Before reaching a final investment decision, the company will need to agree to with partners including ExxonMobil Corp., China National Petroleum Corp. and Mozambican state-owned Empresa Nacional de Hidrocarbonetos. Eni is responsible for offshore projects with ExxonMobil in charge of onshore assets. ENH didn’t respond to questions seeking comment.

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