We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eni Advances Coral North, Evaluates Third Mozambique LNG Facility
Read MoreHide Full Article
Key Takeaways
Eni plans to drill up to six Coral North development wells in November, with production expected by 2028.
The Coral North project could boost Eni's Mozambique LNG output to nearly 7 million metric tons annually.
Eni is evaluating a third Mozambique FLNG facility in the pre-FEED stage, with no FID date.
Eni S.p.A. (E - Free Report) , an Italian integrated energy company, is planning to drill as many as six development wells that will supply natural gas to its Coral North floating liquefied natural gas platform offshore Mozambique. The company mentioned that it will start drilling the wells in November this year, with production expected to start by 2028.
The development wells will enable Eni to increase production from Mozambique’s offshore reserves. The company considers Mozambique a strategically attractive resource due to its geographical positioning and proximity to premium LNG-importing markets. Eni noted that Mozambique could supply these markets, particularly Asian markets where demand for LNG remains elevated, without relying on critical maritime transportation routes, such as the Strait of Hormuz. The Strait of Hormuz has been facing supply disruptions since the start of the conflict between Iran and the United States earlier this year. It is a critical chokepoint that accounts for nearly one-fifth of the global energy flows. This geographic advantage could enhance Mozambique’s strategic importance in the global gas market.
The company highlighted that the production from the new development wells is expected to support output from the Coral North platform. This could raise E’s output in the African country to nearly 7 million metric tons per annum.
Eni was previously evaluating the construction of a third floating liquefied natural gas (FLNG) facility offshore Mozambique to extract and produce from the prolific reserves in the Rovuma Basin. An Eni spokesperson noted that this FLNG project is currently in the pre-front-end engineering and design stage (pre-FEED), which involves assessing the technical feasibility and associated costs. The stage will enable the company to move toward a final investment decision on the project. However, the company has not provided any details regarding a targeted FID.
Other Energy Players in Mozambique's Rovuma Basin
Alongside Eni, Mozambique’s Rovuma Basin hosts two other major LNG projects operated by TotalEnergies SE (TTE - Free Report) and ExxonMobil Holdings Corporation (XOM - Free Report) .
TotalEnergies’ Mozambique LNG project is being developed in Area 1 of the Rovuma Basin. The company has faced several setbacks with this project, but it remains on schedule to begin LNG production in 2029. The Mozambique LNG project is expected to have a production capacity of 13 million tons per year.
The Rovuma LNG project is operated by ExxonMobil in Area 4 of the Rovuma Basin. Its partners in Area 4 are ENH, Eni, Korea Gas Corporation (KOGAS), China National Petroleum Corporation (CNPC) and ADNOC subsidiary XRG. The company is currently working toward a final investment decision (FID) on the project.
View the Zacks #1 Rank List
Image: Bigstock
Eni Advances Coral North, Evaluates Third Mozambique LNG Facility
Key Takeaways
Eni S.p.A. (E - Free Report) , an Italian integrated energy company, is planning to drill as many as six development wells that will supply natural gas to its Coral North floating liquefied natural gas platform offshore Mozambique. The company mentioned that it will start drilling the wells in November this year, with production expected to start by 2028.
The development wells will enable Eni to increase production from Mozambique’s offshore reserves. The company considers Mozambique a strategically attractive resource due to its geographical positioning and proximity to premium LNG-importing markets. Eni noted that Mozambique could supply these markets, particularly Asian markets where demand for LNG remains elevated, without relying on critical maritime transportation routes, such as the Strait of Hormuz. The Strait of Hormuz has been facing supply disruptions since the start of the conflict between Iran and the United States earlier this year. It is a critical chokepoint that accounts for nearly one-fifth of the global energy flows. This geographic advantage could enhance Mozambique’s strategic importance in the global gas market.
The company highlighted that the production from the new development wells is expected to support output from the Coral North platform. This could raise E’s output in the African country to nearly 7 million metric tons per annum.
Eni was previously evaluating the construction of a third floating liquefied natural gas (FLNG) facility offshore Mozambique to extract and produce from the prolific reserves in the Rovuma Basin. An Eni spokesperson noted that this FLNG project is currently in the pre-front-end engineering and design stage (pre-FEED), which involves assessing the technical feasibility and associated costs. The stage will enable the company to move toward a final investment decision on the project. However, the company has not provided any details regarding a targeted FID.
Other Energy Players in Mozambique's Rovuma Basin
Alongside Eni, Mozambique’s Rovuma Basin hosts two other major LNG projects operated by TotalEnergies SE (TTE - Free Report) and ExxonMobil Holdings Corporation (XOM - Free Report) .
TotalEnergies’ Mozambique LNG project is being developed in Area 1 of the Rovuma Basin. The company has faced several setbacks with this project, but it remains on schedule to begin LNG production in 2029. The Mozambique LNG project is expected to have a production capacity of 13 million tons per year.
The Rovuma LNG project is operated by ExxonMobil in Area 4 of the Rovuma Basin. Its partners in Area 4 are ENH, Eni, Korea Gas Corporation (KOGAS), China National Petroleum Corporation (CNPC) and ADNOC subsidiary XRG. The company is currently working toward a final investment decision (FID) on the project.