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 new vessel, launched recently, is not a simple replica. It is an enhanced version, with a 5% increase in liquefaction capacity to 3.6 million tonnes per annum and a development schedule reduced from 60 to 48 months. Despite an industry-wide cost inflation of about 20% over eight years, Eni maintained the same capital expenditure for Coral North by applying over 1,000 lessons learned from Coral South, involving improvements in processes, materials, and design. The company benefited from working with the same contractor consortium.

Cost Competitiveness and Advantages 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 an onshore facility. Specific costs are approximately $600 million for shallow, calm waters and around $800 million for deep water with harsh conditions. FLNG offers significant advantages in security, safety, and delivery schedule, as construction occurs in a shipyard 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

In Mozambique's Offshore Area 4, the Coral South and North projects will each monetize 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, there are also other non-straddling gas discoveries in the area whose gas is not designated for the planned onshore Rovuma LNG project, providing additional potential for floating liquefaction. Beyond Africa, Eni is pursuing FLNG projects in Argentina in partnership with YPF and XRG (an Adnoc affiliate). The Argentina LNG scheme, supported by vast shale gas resources, plans for two shallow-water vessels with a total capacity of 12 million tpa and an option for a third. Studies are ongoing to determine if gas processing will be onshore or on the vessels, with an onshore processing scenario likely, which could simplify the vessel design. A final investment decision is targeted for mid-2026.