The first shipment of liquefied natural gas (LNG) from Mozambique’s massive offshore Coral Sul FLNG facility has been lifted by bp.
Under a long-term contract, bp will purchase 100% of LNG output from Coral Sul FLNG, boasting a production capacity of up to of 3.4 million tonnes of LNG per year. It was the first-ever facility to be deployed in African waters.
The British headquartered company aims for an LNG portfolio of 30 million tonnes by 2030 and the new Mozambique supply source expands its flexible, high-quality LNG portfolio.
“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,” Carol Howle, EVP trading and shipping at bp, said. “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.”
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).
The Coral Sul FLNG arrived offshore Mozambique in early January 2022; mooring and connection to the six production wells at the Coral South reservoir were finalised in March and May 2022, respectively.
Coral South was Eni’s first project approved with its Area 4 partners – ExxonMobil; China National Petroleum Corporation (CNPC); Galp Energia; Korea Gas Corporation and Empresa Nacional de Hidrocarbonetos (ENH) – for developing gas resources discovered in the Rovuma Basin, off Mozambique’s coast.
The project involves producing and selling gas from the southern part of the Coral field, using a floating plant for liquefying natural gas with a capacity of 3.4 million tonnes, linked to six subsea gas-producing wells. Eni and its Area 4 concessionaries then sell the liquefied gas to bp, under a 20-year contract with an optional 10-year extension.