Eni Buys Tango FLNG From Exmar Group

Eni Buys Tango FLNG From Exmar Group
Eni has acquired the Export LNG company which owns the Tango FLNG floating liquefaction facility, from Exmar group.

Italian energy giant Eni has acquired the Export LNG company which owns the Tango FLNG floating liquefaction facility, from Exmar group.

The FLNG will be used by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII block, in line with Eni's strategy to leverage gas equity resources.

The value of the transaction for the sale of Tango FLNG is in the range of $572 and$ 694 million, depending on the actual performance of the Tango FLNG during the first six months on site. The facility will be made available to Eni at the closing date of the transaction, which is expected in the second half of August 2022.

“We are pleased to work with Eni to help increase their LNG supplies on a fast-track basis. This represents a significant milestone for EXMAR in its ambition and proof of our ability to further develop LNG infrastructure solutions,” Exmar’s executive chairman Nicolas Saverys said.

The Tango FLNG, built in 2017, has a treatment capacity of approximately 3 million standard cubic meters/day and an LNG production capacity of approximately about 1 billion standard cubic meters per year.

The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favor the development and enhancement of Eni's equity gas by accelerating production start-up time.

Tango FLNG will begin its activity in Congo in the second half of 2023, following the completion of mooring and connection works necessary to tie with the Marine XII network and infrastructure.

LNG production from Marine XII is expected to begin in 2023, and when fully operational it will provide volumes of more than over 4.5 billion cubic meters per year.

The previous job the Tango FLNG had was with Argentina’s YPF, but it ended in October 2020 following a settled dispute regarding a terminated decade-long charter deal. Exmar received $150 million under the settlement. After the contract cancellation, Exmar demobilized the unit in a sheltered location in Nueva Palmira in Uruguay.

To contact the author, email bojan.lepic@rigzone.com

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