Belgian shipping company Exmar has revealed that a floating liquefied natural gas (FLNG) unit it sold to Italy’s energy giant Eni has surpassed production expectations and guaranteed levels while working on the Italian player’s LNG project off the coast of Congo, Africa.
The FLNG unit, known as Tango with 0.6 mtpa capacity, started its deliveries of LNG to international markets in February 2024, only a year after a final investment decision (FID) was taken, bringing Eni’s Congo LNG project online. Exmar inked an agreement to sell the FLNG to the Italian giant in 2022.
As this is the African country’s first natural gas liquefaction project , Congo joined the LNG exporters’ club with its start-up. The Congo LNG project is envisioned to have an overall LNG production capacity of 3 million tons per year (mtpa) or approximately 4.5 billion cubic meters (bcm) per year from 2025.
Eni, as the operator, claims that the development is designed to exploit the gas resources of the Marine XII project with the installation of two FLNG units at the Nenè and Litchendjili fields. The second FLNG unit, Nguya , currently under construction , is expected to be in operation by the end of the year, with a capacity of 2.4 mtpa.
According to Exmar, the liquefaction of natural gas onboard the FLNG Tango has been monitored during the initial months of the operation, and the tests have proven that the actual production of LNG has exceeded the guaranteed levels, with an adjusted annual equivalent above 0.6 million tons per annum.
Since the agreement for the sale and purchase of this FLNG contains a price adjustment clause, including a negative correction of $78 million and a bonus of a maximum of $44 million, depending on the performance of the unit, the Belgian player has concluded that it is entitled to a bonus, based on the production data. The bonus amount has not yet been agreed.
Several new contracts related to Congo LNG were signed last year, and some existing ones were expanded. Wison New Energies handed out a transport and installation contract to GEOCEAN, while Eni appointed ABL to provide marine warranty survey services (MWS) for the second phase of the project, following the firm’s work on the first phase.
In addition, Kotug International got a job with the Italian player to deliver marine services for the LNG project in Congolese waters.