Italy’s ENI announces gas exploration model in Mozambique soon

24 November 2014

Italy’s ENI group is about to make a final decision on the project to build a floating platform for processing natural gas to be extracted in northern Mozambique, a group official said in Paris.

On the sidelines of an international conference on liquefied natural gas, Steve Ratcliffe, senior vice president for the gas sector, said the investment decision would be the last official step before the project starts.

Ratcliffe said that in addition to the final investment decision, there were still aspects such as estimating costs and other issues that had yet to be completed.

“We hope to be able to prove the competitiveness of our project,” said Ratcliffe, admitting that a continued drop in oil prices, which have fallen 29 percent in the last twelve months, would reduce the contract prices of liquefied natural gas.

Ratcliffe urged the government of Mozambique not to allow approval of the natural gas projects to drag on, noting that the current market may not be the same after 2020, due to a possible slowdown in the growth of Asian economies, the main markets interested in buying Mozambican natural gas.

With a potential for exploration of about 180 trillion cubic feet of natural gas, projects led by Anadarko Petroleum and ENI may place Mozambique among the largest exporters of liquefied natural gas, with the deadline for the start of commercial operation set by the companies and the Mozambican government at 2018. (macauhub/MZ)