Eni SpA (E - Free Report) , a co-venture participant of Area 4, has secured sufficient liquefied natural gas (LNG) off take commitments from affiliated buyer entities.
This marks a significant milestone that will enhance the capabilities of the participants to secure project financing in 2019 on the first phase of the Rovuma LNG project. Subject to the completion of fully-termed agreements and receipt of the approval from the Government of Mozambique, these commitments will be finalized and begin in the upcoming weeks.
The development plan for the first phase of the project was submitted by the Mozambique Rovuma Venture to the Government of Mozambique in July 2018. The first phase of the Rovuma LNG project will produce, liquefy and market natural gas from the Mamba fields located in the Area 4 block offshore the Rovuma Basin.
On behalf of the Area 4 joint venture, ExxonMobil Corporation (XOM - Free Report) will manage the construction as well as operation of natural gas liquefaction and related facilities, while Eni will direct the construction and operation of the upstream facilities.The government is evaluating the proposed development plan and expects to start production in 2024.
The proposed design and construction of two liquefied natural gas trains has been outlined in the development plan for the first phase of the Rovuma LNG project. Each of these trains is estimated to produce 7.6 million tons of LNG per year. Currently, Mozambique Rovuma Venture is under discussions with the Mozambican Government on details of the plan.
The proposed Rovuma LNG project will generate revenues for the government as well as support long-term economic growth in Mozambique by developing the local workforce, improving capabilities and demand for suppliers as well as aiding community development efforts.
Mozambique Rovuma Venture S.p.A.is an incorporated joint venture. Area 4 participants are ExxonMobil, Eni, the China National Petroleum Corporation, Empresa Nacional de Hidrocarbonetos, Kogas and Galp. ExxonMobil, Eni and CNPC together hold a participation interest of 70% in the Area 4 exploration and production concession contract (EPCC). Empresa Nacional de Hidrocarbonetos, Galp and Kogas hold an interest of 10% each.
Zacks Rank & Key Picks
Currently, Eni carries a Zacks Rank #3 (Hold).
A few better-ranked players in the energy space are SunCoke Energy, Inc (SXC - Free Report) and Unit Corporation (UNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke acquires, owns and operates coke making as well as coal mining operations. The company delivered average positive earnings surprise of 302.6% in the last four quarters.
Unit Corp is a diversified energy company. The company has an average positive surprise of 21.2% in the last four quarters.
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