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ENI due to decide this year on investment in natural gas in Mozambique

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Italian group ENI is expected to make a final investment decision by December for the project to explore the natural gas reserves discovered in northern Mozambique, said the CEO of the group.

Claudio Descalzi added, speaking to Jeune Afrique magazine, that a decision on a onshore project with US group Anadarko Petroleum would be taken only in 2017, since it is a more complex process, and advance agreements with international natural gas buyers are needed.

“We continue to develop our Coral project, located in one of our offshore blocks, aimed at natural gas processing on a floating platform and must make an investment decision in December 2015, for starting in 2020,” said the CEO the oil group.

The amount of natural gas discovered by two consortia led by ENI and Anadarko Petroleum puts Mozambique among the five countries with the largest reserves, which official estimates indicate total about 200 trillion cubic feet.

ENI maintains its intention to transform the gas on two floating platforms, while Anadarko plans to build a liquefied natural gas plant on land, in partnership with the Italian oil company.

Anadarko Petroleum holds 26.5 percent of the consortium of Area 1, participated also by Mitsui, of Japan, Indian companies ONGC Videsh, BPRL and Oil India and the Mozambican government’s Empreesa Nacional de Hidrocarbonetos (ENH).

Area 4 is in turn led by ENI, with 50 percent, also with the participation of the China National Petroleum Corporation, 20 percent and Portugal’s Galp Energia, South Koreaps Kogas and ENH with 10 percent each.

Source: MacauHub

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