Join our crew and become one of the 106,878 members that receive our newsletter.

Mozambique To Export First LNG As Global Natural-Gas Prices Soar

Coral Sul Floating Liquefied Natural Gas (FLNG) Photo credit: ENI

Mozambique To Export First LNG As Global Natural-Gas Prices Soar

Total Views: 2335
August 20, 2022

By Matthew Hill and Sergio Chapa

(Bloomberg) –Mozambique is poised to ship its first cargo of liquefied natural gas overseas, joining the ranks of the world’s exporters as a global energy crunch pushes prices of the fuel to record highs. 

The LNG tanker British Mentor, operated by BP Plc, is set to arrive Aug. 24 at a new floating terminal that Eni SpA is completing off Mozambique’s northern coastline, ship-tracking data compiled by Bloomberg show. 

Read Also: The ESG Hypocrisy Of Shipping LNG To Europe

Commissioning activities at the Coral-Sul FLNG vessel are progressing, and first exports will be communicated in due course, Eni said in an emailed statement. The Italian company has said it’s already planning a second floating export platform in the southern African country that could be brought on in less than four years. 

Mozambique is firing up its first export terminal as tight gas supplies after Russia’s invasion of Ukraine send prices soaring in Europe, where nations including the UK and Germany have warned that the fuel squeeze could prompt rationing and trigger a recession. Seeking to end their dependence on Russian gas, European buyers are paying a hefty premium as they compete with Asia to secure LNG cargoes ahead of the winter. 

Eni’s $7-billion Coral-Sul project had been targeting first exports by October and has moved forward despite the pandemic and an Islamic State-linked insurgency in Mozambique that derailed a $20 billion TotalEnergies SE export facility. BP in 2016 signed a deal to buy all of the output for 20 years from Coral-Sul, which is designed to produce 3.4 million metric tons of LNG.

Eni’s world’s first built ultra-deepwater floating liquefaction plant.

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

© 2022 Bloomberg L.P.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up


Maritime and offshore news trusted by our 106,878 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.