Business Monitor International: Mozambique's Floating LNG Projects Progress as Onshore LNG Struggles

We have revised Mozambique's gas production forecast to the upside following the inclusion of Eni's Coral South Development FLNG Project from 2020. The timing for the onshore LNG terminal however is increasingly uncertain, with falling global oil and LNG prices to cause delays to project FID. We have pushed back first onshore LNG production by one year, from 2020 to 2021. 

Plans for floating liquefied natural gas (FLNG) projects in Mozambique are firming up, with Eni announcing that the KD consortium, consisting of KBR and Daewoo Shipbuilding & Marine Engineering Company, has been awarded a front end engineering design (FEED) contract for the Coral South Development Project FLNG facility. With this award, the KD consortium will be one of the three consortia competing for the engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the FLNG.

The Coral South Development Project is the second FLNG project Eni is pushing forward in Mozambique, after closing initial tender proposals for FEED of the 'Mamba' FLNG project in June 2014. It would monetise gas resources from the Coral field, which is entirely located in Area 4, operated by Eni, as opposed to the Mamba Complex, which spreads across Areas 1 and 4. Area 1 is operated by Anadarko. MORE