The first LNG cargo from the offshore Coral Sul FLNG facility in Mozambique has been loaded, the country’s first LNG project and first floating LNG (FLNG) facility ever deployed in the deep waters of the African continent.
Coral South produced its first LNG volumes in early October, following the FLNG’s on-schedule start-up. The Coral South FLNG is expected to produce 450 billion cubic metres of natural gas from the Coral reservoir in Mozambique’s Rovuma Basin — and to liquefy 3.4 million metric tonnes of that gas for transport, annually.
The start of production at the facility comes at an important moment, as LNG plays a key role supporting energy security. As the demand for LNG is expected to continue growing globally, bp continues to diversify its portfolio of LNG sources and develop innovative solutions for customers.
In October 2016, bp signed a long-term offtake contract for the purchase of LNG for over 20 years with the Coral sellers comprising of Mozambique Rovuma Venture S.p.A. (a joint venture owned by Eni, ExxonMobil and CNPC), GALP, KOGAS and ENH (Mozambique state entity).
Under its long-term contract, bp will purchase 100 per cent of LNG output from Coral Sul FLNG which has the capacity to produce up to of 3.4 million tonnes of LNG per year.
Carol Howle, EVP trading and shipping at bp, said: “The start of production from the Coral Sul FLNG facility represents a major milestone for Mozambique, the project partners, and bp as the LNG buyer.
“As the world seeks secure, affordable and lower carbon energy, global demand for LNG is expected to continue to grow.
“This new supply source further enhances bp’s capability to deliver LNG to markets across the world and we look forward to continuing our close collaboration with all those involved in the project.”
ExxonMobil’s LNG business head Peter Clarke said the project will bring significant long-term economic value to the people of Mozambique.
“Today’s first-cargo milestone is a testament to the hard work, continued investment and successful execution of our integrated consortium team. Mozambique is joining the ranks of global LNG producers and contributing to global LNG supplies at a time when the world needs it most.”
Coral South is operated by Eni, the Upstream Delegated Operator of the Area 4 consortium, which is comprised of Eni, ExxonMobil, CNPC, Galp, Kogas and ENH. Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by ExxonMobil, Eni and CNPC, which holds a 70% interest in the Area 4 Exploration and Production Concession Contract. Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10% interest.
