Final Investment Decision on the Eni Floating Liquid Natural Gas (FLNG) Project Coral Gas Field expected to be held today.
The Coral discovery is located in the deep waters of Rovuma basin spanning Mozambique's northern border with Tanzania. It lies in water depths ranging between 1,500m and 2,300m (considered deep water); approximately 55km offshore in the western part of Area 4. Situated 150 miles (241.4km) north-east of Pemba, the field is approximately 30 miles (48.2km) from the coast of Mozambique, in the northern province of Cabo Delgado. (See Map)
The field was discovered in May 2012 and is a high-quality field of Eocenic age containing 16tcf of gas. Exclusive rights to explore the Area 4 of the Rovuma basin containing the field were granted to Eni East Africa in December 2006.
Eni is also the block operator and holds a 50% stake in the Area 4 (ExxonMobil is in the process of acquiring half of this stake for $2.8bln), while the other partners are the Portuguese Galp Energia, KOGAS from South Korea, Empresa Nacional de Hidrocarbonetos (ENH) from Mozambique, which hold 10% stake each, and the Chinese giant CNPC, which holds the remaining 20% stake.
The “Coral South Development Plan”, which was approved by the Government of Mozambique in February 2016, envisages the installation of a floating unit for the treatment, liquefaction and storage of natural gas (Floating LNG - FLNG) with a capacity of over 3.3 mmtones/y fed by 6 subsea wells. It is expected to produce up to 5 TCF of gas with a start-up expected in mid-2022.
In October 2016, Eni and its Area 4 partners signed a binding agreement with BP for the sale of the entire volumes of LNG produced by the Coral South Project, for a period of over twenty years. In November 2016, Eni's Board of Directors approved the investment for the first development phase of the Coral discovery.
The floating LNG will be used to develop the entire resources of the Area 4 and to bring 140bcm of gas into production. It will comprise a turret moored, double-hull, floating vessel equipped for receiving, processing and liquefaction of the produced gas. Offloading facilities will also be included, along with facilities for LNG and condensate storage.