Page 9 - DMEA Week 43 2022

DMEA TERMINALS & TRANSPORT DMEA

The Coral Sul FLNG is the first deepwater floating gas liquefaction plant deployed offshore Africa (Photo: SHI)

Technical problems at Coral Sul FLNG may

delay first gas exports from Mozambique

AFRICA MOZAMBIQUE has reportedly been forced to No information was available as to the nature
postpone the export of its first LNG cargo once or extent of that outage. It is worth noting, how-
again because of technical difficulties at the ever, that the consortium’s very first attempt
Coral natural gas field. to export an LNG cargo was derailed in late
Mozambican Finance Minister Max Tonela August by problems with a critical distillation
had said earlier this month that the Coral South column on the Coral FLNG. The group had to
LNG consortium, led by Eni (Italy), was on track shut the vessel down in order to check for dam-
to load and dispatch its first cargo before the end age, according to an earlier Energy Intelligence
of October. He was speaking as reports emerged report cited by 360Mozambique.com, and as
that the group’s Coral Sul floating LNG (FLNG) a result, BP’s British Mentor tanker was una-
vessel had already started processing gas for the ble to take on LNG and sailed away to another
shipment and that the British Sponsor, an LNG destination.
tanker operated by BP (UK), had arrived at the As of press time, neither Eni nor BP had
field. Shortly afterwards, though, Mozambique’s confirmed reports of a change in schedule for
National Petroleum Institute (INP) indicated Mozambique’s first LNG export cargo.
that Coral South LNG did not view October Eni is the operator of the Coral South LNG
31 as a hard deadline. In an email response to consortium, which has a licence for a section of a
queries from Reuters, it said that the first cargo block known as Area 4 offshore Mozambique in
was expected to depart in late October or early the Rovuma basin. The Italian major discovered
November. the Coral field at Area 4 in 2012 and made a final
Additionally, it confirmed that the gas would investment decision (FID) in favour of going
be delivered to the European market, where forward with the $10bn Coral South LNG pro-
demand for gas is very strong. “Regarding the ject in 2017. The other shareholders in the pro-
LNG export, it will be for European markets, ject are Mozambique Rovuma Venture (MRV),
since BP is committed to take the gas resources a joint venture owned by Eni, ExxonMobil (US)
to Europe,” INP informed Reuters. (The insti- and China National Petroleum Corp. (CNPC);
tute was referring to the agreement that BP has Galp (Portugal); KOGAS (South Korea) and
signed that makes it the sole off-taker of LNG ENH, the national oil company (NOC) of
from the Coral Sul FLNG vessel on an FOB basis Mozambique.
for a period of 20 years.) The partners are using the Coral Sul FLNG
INP’s initial statement indicated that Tonela’s to liquefy gas from their licence area. \This
estimates for a quick departure may have been vessel has a single production train and is cur-
only slightly overstated. On October 27, though, rently anchored in 2,000-metre-deep water. It
Energy Intelligence reported that Coral South has a production capacity of 3.4mn tonnes per
LNG’s first export cargo appeared to be heading year (tpy) and will be used to process 450bn
for a more significant delay. It said specifically cubic metres of gas from the Coral field. It is
that the facility had experienced an outage that the first floating gas liquefaction plant ever to
had interrupted the loading of the British Spon- be deployed at a deepwater field off the coast of
sor tanker. Africa. ™

Week 43 27•October•2022 www. NEWSBASE .com P9