Eni's chief operating officer of natural resources is optimistic about expanding the use of floating liquefied natural gas (FLNG) vessels offshore Mozambique. This optimism stems from the country's substantial gas resources and the fact that the unit cost for newbuild FLNG vessels is now nearly equivalent to that of onshore liquefaction plants.

Success and Evolution from Coral South to Coral North

Following the successful 2022 startup of the Coral South FLNG project, Eni and its partners sanctioned the $7.2 billion Coral North project. This project demonstrates the viability of FLNG technology, which was once viewed skeptically due to earlier projects' cost overruns and delays. Coral South proved the concept by being delivered on schedule and on budget, even during the COVID-19 pandemic. Building on this success, Coral North is an enhanced version, not a simple replica. Its development schedule has been reduced from 60 to 48 months, and liquefaction capacity has increased by 5% to 3.6 million tonnes per annum. Despite 20% industry cost inflation since Coral South, Eni maintained the same capital expenditure by applying over 1,000 lessons learned in processes, materials, and design, and by working with the same contractors.

Advantages and Cost Competitiveness of FLNG

The advancement of FLNG technology has made it highly cost-competitive, with costs per million tonnes per annum of capacity now close to those of onshore facilities. For favorable locations, the cost is about $600 million per million tpa, rising to around $800 million for deepwater, harsh-environment sites. FLNG offers significant advantages in security, safety, and delivery schedule, as vessels are built in shipyards with an experienced workforce. This contrasts sharply with large, remote onshore plants, which require massive new infrastructure, the management and training of tens of thousands of workers—who may leave after the project—and complex relationships with local communities, a consideration less critical for offshore facilities.

Future FLNG Potential in Mozambique and Beyond

The Coral South and North projects will each tap about 5 trillion cubic feet (Tcf) of the Coral field's 15 Tcf of recoverable reserves, leaving 5 Tcf unallocated. While this gas could support a third FLNG vessel, Eni notes there are also other discoveries in Offshore Area 4 whose gas is not earmarked for the planned onshore Rovuma LNG project. Therefore, a potential third FLNG unit could be deployed elsewhere in the area, not necessarily on the Coral field.

FLNG Expansion to Argentina

Beyond Africa, Eni is pursuing FLNG projects in Argentina in partnership with YPF and Adnoc affiliate XRG. The Argentina LNG scheme plans to deploy two shallow-water FLNG vessels, moored near shore, to monetize vast gas resources from the Vaca Muerta shale play. Studies are ongoing to determine if gas processing will occur onshore or on the vessels, with the former being more likely. This simpler design could, in principle, lead to lower costs and faster construction compared to a more integrated vessel like Coral North. The two vessels would have a combined capacity of 12 million tpa, with an option for a third. A final investment decision is potentially targeted for mid-2026, aiming for exports around 2030.