Mozambique’s Empresa Nacional de Hidrocarbonetos has approved the investment plan for its stake in the Coral South FLNG project.
The company owns a 10 percent stake in the Area 4 offshore Mozambique, where the Coral gas field is located.
ENH is set to invest US$800 million out of a total $8 billion investment in the project, Agencia de Informacao de Mocambique, the national news agency reports, citing a company statement.
Italy’s Eni, the operator of the Area 4 with a 50 percent indirect interest owned through Eni East Africa, approved its investment plan on November 18.
The project involves the construction of 6 subsea wells connected to a floating LNG production facility, with a liquefaction capacity of over 3.3 million tons of liquefied natural gas per year, equivalent to approximately 5 billion cubic meters. The total amount of gas discovered in Area 4 is estimated at 85 trillion cubic feet of gas.
In October, BP signed an agreement with Eni, Mozambique’s government and other project partners, booking the total production capacity of the project for a period of over 20 years.
With ENH’s approval of the investment plan, the project moves closer to reaching a final investment decision which will come into effect once all Area 4 partners have approved it.