Coral South FLNG Terminal

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Coral South FLNG Terminal is a proposed floating LNG terminal in Cabo Delgado Province, Mozambique.

Location

The map below shows the approximate location of the Coral South project, in the Rovuma Basin, off the coast of Cabo Delgado Province.

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Project Details

  • 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%)[1]
  • 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[2]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

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).[3] The projected cost is $7 billion, and the projected start date is 2022.[4][5]

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.[6][1] 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.[7][4]

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.[8]

In April 2020, ExxonMobil delayed its final investment decision for the project. The decision had been slated for later in 2020, and the company has yet to announce a new target time frame.[9]

Cost

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.[10]

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References

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