*LNG vessel.
Cape Town — Mozambique expects to ship its first liquified natural gas (LNG) exports to Europe from the Eni-operated Coral Sul floating plant later this month or early November, petroleum regulator INP said on Friday in a supply boost for the energy-starved region.
BP’s LNG tanker, British Sponsor, has already arrived offshore northern Mozambique, said Welligence Energy Analytics in a note, with all of Coral Sul’s annual gas output of 3.4 million tonnes contracted to BP for 20 years on a free-on-board basis.
“Regarding the LNG export, it will be for European markets since BP is committed to take the gas resources to Europe,” said the National Petroleum Institute (INP) in an emailed response to Reuters.
The new LNG cargoes will help alleviate a tight global LNG market and gas shortages in Europe as winter looms following Moscow’s February invasion of Ukraine and Russia’s later decision to curb gas pipeline supplies into major European Union economies.
The exports from Mozambique, which neighbours South Africa, will help transform its economy as billions of dollars pour into the country to develop massive offshore gas fields in its deepwater Rovuma basin.
But a sustained violent insurgency inland with links to Islamic State has scared off investors, as French oil major TotalEnergies last year declared force majeure on its $20 billion LNG project amid rising attacks in the north of Cabo Delgado province.
The five-year old conflict has claimed more than 4,000 lives and displaced around one million people said the World Bank, which expects economic growth to accelerate in the medium term, averaging 5.7% between 2022 and 2024, as LNG production starts.
In January, TotalEnergies CEO Patrick Pouyanne said on a visit to Mozambique that he hoped to restart its Afungi project this year, although INP said the company’s return would likely be next year, depending on security assessments.
