PORTGUAL’S GALP APPROVES FUNDING FOR PHASE 1 OF MOZAMBICAN GAS PROJECT

The Portuguese hydrocarbon company, Galp, says its Board of Directors has approved the investment required for the first phase of development of the Coral South gas field in Area Four of the Rovuma Basin, off the coast of the northern Mozambican province of Cabo Delgado.

Galp is one of the partners in Area Four where the Italian company ENI is the operator. ENI controls a 50 per cent indirect interest in Offshore Area Four owned through ENI-East Africa, which holds 70 per cent of the concession.

The other 20 per cent held via ENI-East Africa belongs to the Chinese company, CNPC. The other three partners, with ten per cent each, are Galp Energia, Kogas of South Korea, and Mozambique’s National Hydrocarbon Company (ENH).

Coral South is estimated to contain 16 trillion cubic feet of gas and ENI has decided to commission a floating liquefied natural gas (FLNG) production facility which will supply the world’s markets with more than 3.3 million tonnes of LNG per year. So far, the consortium has invested about 2.8 billion US dollars in Area Four, and the FLNG project is estimated to cost a further eight billion USD.

ENH has already approved its share of the investment, leaving CNPC and Kogas to approve their shares of the outlay before the Final Investment Decision can be taken. An agreement has already been reached under which all the gas produced from the FLNG plant will be sold to the British company BP over a 20-year period.

The total gas discovered in Area Four is 85 trillion cubic feet.

Source: NAM NEWS NETWORK