Mozambique to export first LNG as global natural gas prices soar

By Matthew Hill and Sergio Chapa

(Bloomberg) – Mozambique is set to ship its first shipment of liquefied natural gas overseas, joining the ranks of global exporters as a global energy crisis pushes fuel prices to record highs.

The British Mentor LNG carrier, operated by BP Plc, is due to arrive on August 24 at a new floating terminal that Eni SpA is completing off the northern coast of Mozambique, according to ship tracking data compiled by Bloomberg.

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The commissioning activities of the Coral-Sul FLNG vessel are progressing and the first exports will be communicated in due course, Eni said in an emailed statement. The Italian company said it is already planning a second floating export platform in the southern African country which could be in place in less than four years.

Mozambique opens its first export terminal as gas supplies after Russia’s invasion of Ukraine drive up prices in Europe, where countries including the UK and Germany have warned the Fuel shortages could lead to rationing and trigger a recession. Seeking to end their reliance on Russian gas, European buyers are paying a steep premium as they compete with Asia to secure LNG shipments ahead of winter.

Eni’s $7 billion Coral-Sul project aimed for first exports in October and progressed despite the pandemic and an Islamic State-linked insurgency in Mozambique that derailed a $20 billion TotalEnergies SE export facility of dollars. BP signed an agreement in 2016 to buy all production for 20 years from Coral-Sul, which is designed to produce 3.4 million metric tons of LNG.

The first ultra-deep water floating liquefaction plant built by Eni in the world.

Mozambique, the third poorest country in the world according to World Bank data, has seen its economy rocked in recent years by a sovereign debt scandal and jihadist insurgency. A series of severe tropical cyclones have also wreaked havoc along its coastline.

© 2022 Bloomberg L.P.