Eni to Decide on Mozambique LNG Project Investment by Year-End


SINGAPORE, Oct 30 (Reuters) - Italy's ENI said on Friday that it was still looking to secure debt financing for its Coral LNG project in Mozambique and that it would make a final investment decision on the development by year-end.

Global liquefied natural gas prices have plummeted in line with oil, with some expecting them to test new lows towards the end of the decade as a wave of supply hits the market just as demand in China slows.

Eni is in discussions to secure 60-70 percent of the financing for the Coral project via debt, Ferruccio Taverna, vice president for ENI in Mozambique, said at an industry conference in Singapore.

The company on Thursday said it was in final stages of talks with oil major BP Plc for the offtake of liquefied natural gas (LNG) from the project, which will draw gas from the Coral field and liquefy offshore for shipping to world markets.

Taverna said the development was planned to begin producing 2.5 million tonnes per year by 2019.

Eni is also building a bigger onshore LNG facility in Mozambique with projected production of 10 million tonnes per year starting around 2021. The company will make a final investment decision on that project next year, Taverna said.

(Reporting by Jacob Gronholt-Pedersen; Editing by Joseph Radford)

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
Operator - B-Shift
Expertise: Laborer|Mechanical Technician|Production Operator
Location: Lodi, CA
O&M Turbine Wind Techs
Expertise: Mechanical Technician
Location: Oklahoma, OK
Field Operations Supervisor II Job
Expertise: Field Service Tech|Refinery / Plant Operations Supervisor|Regulatory Compliance
Location: Minneapolis, MN
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours