Coral South FLNG Terminal
|This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.|
Coral South FLNG Terminal is a proposed floating LNG terminal in Cabo Delgado Province, Mozambique.
The map below shows the approximate location of the Coral South project, in the Rovuma Basin, off the coast of Cabo Delgado Province.
- Owner: Eni (25%) ExxonMobil Corp. (25%), and China National Petroleum Corp. (20%), Empresa Nacional de Hidrocarbonetos de Mozambique (10%), Korea Gas Corp. (10%), and Galp Energia SGPS SA (10%)
- Location: Coral Gas Field, Rovuma Basin, Cabo Delgado Province, Mozambique
- Coordinates: -10.9, 41.2 (approximate)
- Capacity: 3.4 mtpa, 0.49 bcfd
- Status: Construction
- Type: Export
- Start Year: 2022
- Financing: In 2017 debt financing totalling US$4.677 billion was agreed in seven tranches with the involvement of the export credit agencies of China, France, Italy and South Korea and private banks based in those countries, as well as Sumitomo Mitsui Banking Corporation
Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day
In November 2016, Italian oil & gas company Eni authorized investment for the first phase of its Coral South project, under which it would construct six deepsea gas wells and a floating liquefied natural gas (FLNG) facility off the coast of Mozambique. The project would have a capacity of 3.4 million metric tons per year (mtpa), or 0.49 billion cubic feet per day (bcfd). The projected cost is $7 billion, and the projected start date is 2022.
In June 2017, Eni made its final investment decision (FID) on this first phase of the project. Eni will use debt to finance 60% of the project's cost, borrowing from a consortium of 15 banks. As part of a 20-year deal, all LNG produced in the field will be sold to BP. The engineering, procurement, and construction (EPC) contract was awarded to a consortium of three companies: the UK's TechnipFMC, Japan's JGC Corporation, and Korea's Samsung Heavy Industries. Later that month, Eni gave a contract for supply of subsea production systems, equipment, and services to GE Oil & Gas, a subsidiary of U.S. firm General Electric.
In January 2020, developers announced the launch of the terminal's hull in Geoje, South Korea. The launch indicated project progress, which exceeded 60% completion and was still in line with production start-up by 2022.
In June 2021, Eni confirmed that the project is on track to start up as planned in 2022. This is despite the militant violence which has affected the region surrounding the project since March 2021 and which has caused Total to declare force majeure on its larger Mozambique LNG project. A spokesperson for Eni said; "We confirm that so far the violence in the north of Mozambique has not affected the Coral South project timeline and we confirm startup in 2022 as per schedule". 
Bloomberg reported in May 2017 that the Mozambique government encouraged two rival LNG projects, Anadarko Eni Mozambique LNG Terminal and Italy-based Eni Coral South FLNG Terminal to work together to eliminate duplication of costly infrastructure. Ultimately, they agreed to a deal allowing them to develop independently while sharing onshore liquefaction infrastructure.
Articles and resources
- Eni lets FLNG contracts to produce Coral South off Mozambique, Oil & Gas Journal, 2 June 2017.
- Tom Mostyn, Coral Sul FLNG hull launched in South Korea, Hydrocarbon Engineering, January 16, 2020
- Coral South FLNG, IJGlobal, accessed May 2020.
- Eni approves investment for Mozambique’s Coral FLNG development, World Oil, 18 Nov. 2016.
- Momentum building for LNG sector offshore Mozambique, UPI, 27 June 2017.
- Mozambique FLNG, Coral South Development Project, KBR document, accessed June 2017.
- Eni Clears Coral South FLNG Development Offshore Mozambique, E&P, 1 June 2017.
- Eni lets subsea contract for Coral South FLNG off Mozambique, Oil & Gas Journal, 27 June 2017.
- Stuart Elliott, Italy's Eni on track for 2022 startup at floating Mozambique LNG project, S&P Global, Jun. 17, 2021
- Dan Murtaugh, "Energy Titans Get Schooled in Sharing as Billions Seen Blown," Bloomberg, May 9, 2017.