IHS CERAWeek: Eni CEO Says Mozambique Gas 'Competitive' Due To Low Costs


HOUSTON, April 22 (Reuters) - Low natural gas extraction costs in Mozambique will allow Italian energy company Eni SpA to produce liquefied natural gas (LNG) from the country that is very competitive, Chief Executive Officer Claudio Descalzi said on Wednesday.

Descalzi, speaking at IHS CERAWeek in Houston, said the company's LNG facilities would become operational in Mozambique in 2020. A final investment decision is expected before the end of 2015.

"Mozambique is good because the upstream side is not very expensive," he said. "It is fast and cheap, so it can be very competitive in the market."

He said wells could be brought online in the space of several weeks.

In a strategy update earlier this year, Eni said it plans to build an onshore LNG plant and two floating LNG plants in its giant Mamba field, with a combined capacity of 10 million tonnes per annum.

Mozambique, one of Africa's poorest countries, wants to begin lucrative exports before a wave of new supply from rivals enters the market.

(Reporting by Terry Wade; Editing by Jeffrey Benkoe)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Production Operator - Bladder Blade Separators/Manifolds Speci
Expertise: Mechanical Technician|Production Operator|Production Technologist
Location: Houston, TX
Commercial Engineering Analyst - Refinery
Expertise: Commercial Management|Refinery Specialist|Refinery Staff
Location: Baton Rouge, LA
Accounting Manager
Expertise: Accounting
Location: Houston, TX
search for more jobs

Brent Crude Oil : $52.67/BBL 1.91%
Light Crude Oil : $51.6/BBL 2.60%
Natural Gas : $3.17/MMBtu 2.76%
Updated in last 24 hours