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.