Mozambican President Filipe Nyusi on Sunday announced the first export of Liquefied Natural Gas (LNG), from the Rovuma Basin, off the coast of the northern province of Cabo Delgado. The LNG was produced by the Coral Sul floating LNG platform, and left for the international market on board the cargo ship “British Sponsor”.”This is the first shipment of LNG under the long term purchase and sale agreement with British Petroleum (BP)”, said Nyusi. Under this agreement all the LNG produced at the floating platform for the next 20 years has been sold in advance to BP. Nyusi recalled that in 2016 the government approved the development plan for the Coral South Floating LNG project, and in 2017 the Final Investment Decision on the project was taken. The government at the time was convinced that the first export from the floating platform would take place in 2022. “Everything has worked out”, said Nyusi. “Today Mozambique has entered the annals of world history as one of the exporters of liquefied natural gas”. This would contribute to energy security in the countries that are major consumers of natural gas. This first shipment, he added, was a sign of market recognition that Mozambique offers a stable, transparent and predictable environment for multi-billion dollar investments, in which the use of high technology stands out with the purpose of monetizing resources in a phase of energy transition. Nyusi stressed the effect of LNG exports on the balance of trade, and the improvement of the public accounts through tax revenue and profit sharing, as well as the appropriation of modern technology by Mozambicans trained during the various phases of construction of the floating platform. “This project is the first in a more ambitious development plan”, said the President. He encouraged the various companies involved in onshore LNG projects to follow the plans through to fruition, given the importance they could have for Mozambique. The next LNG project to take shape is likely to be that of the consortium headed by the French company TotalEnergies, at the Afungi Peninsula in Cabo Delgado. But TotalEnergies has made it clear that it can only resume the onshore LNG project once the security situation has improved. Nyusi urged Mozambicans not to imagine that gas is the sole and greatest solution for the country’s development. Instead, they should intensively increase production and productivity “in our traditional activities such as agriculture, fisheries, tourism, and electricity generation, among others”. He congratulated the investors in Area Four of the Rovuma Basin, where the Coral Sul project is located, for their pioneer LNG operations. The operator of Area Four is the Italian energy company ENI, with a holding of 50 per cent. The China National Petroleum Corporation (CNPC) has a 20 per cent holding. Kogas of Korea, Galp of Portugal and Mozambique’s own National Hydrocarbon Company (ENH) each have holdings of ten per cent. The deal whereby the entire Coral Sul LNG production is sold to BP is valid for 20 years, with an option for a ten year extension. The Coral Sul project is budgeted at 6.12 billion euros (6.34 billion US dollars). Its target is to produce 3.4 million tonnes of LPG a year. Source: AIM / Miramar
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