Galp gives green light for Coral FLNG investment plan
Portugal’s Galp Energia is the latest in line to approve the investment plan for the Coral South FLNG project in Mozambique, following Eni and ENH.
The company said in its statement on Monday its board of directors approved the investment related to the Coral South area, the first development related to the discoveries made in the Area 4 of Mozambique’s Rovuma basin.
The approval of the investment moves the project closer to its final investment decision.
The Coral South project involves the construction of an FLNG unit with a liquefaction capacity of over 3.3 mtpa of liquefied natural gas per year, which will be connected to six subsea wells.
The FLNG will be located in the southern part of the Coral discovery, which is exclusively located within Area 4 and contains around 16 Tcf of gas in place. The total gas discovered in Area 4 is estimated at 85 Tcf, including the large Mamba discovery.
Eni, the operator of Area 4 with a 50 percent indirect interest owned through Eni East Africa, which holds a 70 percent stake in Area 4, approved the Coral South investment plan mid-November and was later followed by Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH).
In October, the consortium signed an agreement with BP for the entire offtake of LNG produced through the Coral South FLNG, for a period of 20 years.
Galp holds a 10 percent stake in Area 4, like Kogas and ENH while China National Petroleum Corporation (CNPC) has an indirect stake of 20 percent through Eni East Africa.