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01/14/2020 | News release | Distributed by Public on 01/14/2020 02:21

Eni and the Area 4 partners launch the hull of Coral Sul FLNG

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Eni and the Area 4 partners launch the hull of Coral Sul FLNG

The launch marks the timely progress of the project, which exceeds 60% completion and is in line with production start up by 2022.

14/01/2020 09:00 CET

San Donato Milanese (Milan), 14 January 2020 - Eni and the Area 4 partners announced today in Geoje, South Korea, the launch of the hull of the Coral Sul Floating Liquefied Natural Gas (FLNG) treatment and liquefaction facility. The FLNG is part of the Coral South project that will put in production 450 billion cubic meters of gas of the Coral reservoir, offshore Mozambique. The launch marks the timely progress of the project, which exceeds 60% completion and is in line with production start up by 2022.

The hull is 432 meters long, 66 meters wide and weighs approximately 140,000 tons. Its eight-storey accommodation module, which will house up to 350 people, is also ready to be lifted and integrated with the hull system. Fabrication activities are also well underway for the 12 gas treatment and LNG modules, with all main equipment ready for integration and first deck stacking executed.

With a gas liquefaction capacity of 3.4 million tons per year (MTPA), the Coral Sul FLNG will be the first FLNG ever deployed in deep waters, at water depth of approximately 2,000 meters, and the first purpose-build FLNG in Africa. Drilling and completion activities for the six subsea wells that will feed the liquefaction unit are ongoing offshore Mozambique.

Mr Adriano Mongini, Eni's EVP, West Africa Region, said that 'the Coral Sul FLNG hull launching is an outstanding milestone which has been possible thanks to the commitment of Eni, its Area 4 partners, contractors and Mozambican authorities. We share the belief that Coral South is a pioneering project that will trigger further developments and new investments'.

Mr Carlos Zacarias, Chairman of the Mozambican Institute of Petroleum (INP), representing the Government of Mozambique, commented that 'We believe that at this rate we will in fact have, by 2022, the production, liquefaction and export of the first LNG cargo gas from the Coral FLNG Project, and from Mozambique, consequently making the expected transformations in job creation, development of local business and incomes from LNG sale of the first gas liquefaction project in the country, benefiting the Mozambican state and people over the duration of the project'.

Coral South is the first LNG project in Mozambique. It includes initiatives aimed at enhancing the overall capabilities of the local workforce and supply chain, as well as to develop local SMEs. Direct training and recruitment activities for more than 800 Mozambicans are under implementation in Mozambique, South Korea, and Italy, while vocational training opportunities and local content plan initiatives for further 1000 resources are being carried out by Coral South contractors.

About Eni

Eni has been present in Mozambique since 2006. Between 2011 and 2014, the company discovered supergiant natural gas resources in the Rovuma basin, in the Coral, Mamba Complex and Agulha reservoirs, holding estimated 2,400 billion cubic metres of gas in place. Eni also holds exploration rights to offshore blocks A5-B, Z5-C and Z5-D in the Angoche and Zambezi basins.

About Area 4

Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract. In addition to MRV, Galp, KOGAS and Empresa Nacional de Hidrocarbonetos E.P. each hold a 10 percent interest in Area 4. Eni is leading the construction and operation of the floating liquefied natural gas facility on behalf of MRV.