Page 8 - GLNG Week 45 2021

GLNG AFRICA GLNG

Eni says Coral-Sul FLNG project

for Mozambique is “on track”

PROJECTS & ITALIAN oil and gas major Eni has updated to become the first producer of LNG in Mozam-
COMPANIES Mozambique’s President Filipe Nyusi about the bique, as its project will reach the development
progress of work on the floating LNG (FLNG) stage next year. The consortium’s FLNG vessel
vessel that will be deployed by the Coral South will be capable of turning out 3.4mn tonnes per
LNG consortium and assured him that the pro- year (tpy) of LNG.
ject remains on schedule. Eni was the first international oil company
In a statement, Eni said its CEO Claudio Des- (IOC) to sign on to a major LNG scheme in
calzi had informed Nyusi during a meeting on Mozambique. The Italian major and its partners
November 5 that work on the FLNG unit was discovered Coral at Area 4 in 2012 and have
on track. The vessel has now been completed at estimated the field’s reserves at approximately
the Samsung Heavy Industries (SHI) shipyard in 16 trillion cubic feet (463bn cubic metres) of gas
South Korea, he said. in place (GIP). They made an FID in favour of
Descalzi did not say when the FLNG unit going forward with the $10bn Coral South LNG
might arrive at the Coral section of Area 4 off- project in 2017 and have said they will drill six
shore Mozambique, which will supply feed- development wells in 2,000-metre-deep water to
stock for the Coral South LNG project. Work provide feedstock for the FLNG.
on the vessel’s hull and topside modules began The shareholders in the project are Mozam-
at SHI in September 2019. The hull was then bique Rovuma Venture (MRV), a joint venture
launched in January 2020, and the first topside owned by Eni (the operator), ExxonMobil
modules were lifted into place the following (US) and China National Petroleum Corp.
May. (CNPC); Galp (Portugal); KOGAS (South
Coral South LNG will have the world’s first Korea), and ENH, Mozambique’s national oil
ultra-deepwater FLNG operation. It is also slated company (NOC).™

AMERICAS

ARC strikes deal to supply gas to LNG Canada

PROJECTS & ARC Resources said last week that it had struck as the US Gulf Coast. The plant’s location will
COMPANIES a deal to supply natural gas to a member of the enable shorter sailing times as well as allowing
LNG Canada consortium, which is building an tankers to bypass the Panama Canal, where con-
LNG export terminal on the British Columbia gestion led to delays in LNG shipments to Asia
coast. last winter.
The agreement is set to take effect when LNG ARC is the largest producer in the Montney
Canada enters service – expected in 2025 – and shale gas play, which spans Alberta and BC. The
will see ARC supply 150mn cubic feet (4.2mn company’s total production reached 353,657
cubic metres) per day of gas over the long term barrels of oil equivalent per day (boepd) on aver-
to be used as feedstock for the terminal. The gas age during the third quarter of 2021, with natu-
will come from ARC’s Sunrise facility, the com- ral gas accounting for 61% of this. Its gas output
pany said. It did not specify which consortium nearly doubled year on year to 1.3bn cubic feet
member the agreement was with. (36.8 mcm) per day in the third quarter, largely
Development of LNG Canada is being led by as a result of its merger with Seven Generations
Royal Dutch Shell, which operates the project Energy earlier this year.
with a 40% interest. The other participants in the Sunrise produced an estimated 286 mmcf
consortium are Malaysia’s Petronas, with a 25% (8.1 mcm) per day in the third quarter, but
stake, PetroChina and Japan’s Mitsubishi with ARC noted that it was planning to invest
15% each and Korea Gas (KOGAS) with 5%. CAD115mn ($92.5mn) into an expansion of
The project is being built to take advantage of the facility in 2022. This is anticipated to add
close proximity to Asia in comparison with other 80 mmcf (2.3 mcm) per day of gas production
LNG-producing regions in North America, such and processing capacity.™

P8 www. NEWSBASE .com Week 45 12•November•2021