Mozambique Approves Plans for Joint-Venture LNG project

05/14/19 11:26 AM EDT

By Patrick Costello


The government of Mozambique has given the go ahead to a liquefied natural gas project by a joint venture between Eni SpA (ENI.MI), Exxon Mobil Corp. (XOM) and China National Petroleum Corp, Eni said Tuesday, paving the way for a final investment decision from the venture later this year.

It's the third plan for the development of natural gas reserves in the Rovuma Basin in Mozambique to receive approval in the past five years, Eni said.

The joint venture, known as the Mozambique Rovuma Venture, aims to produce, liquefy and market natural gas from three reservoirs of the Mamba complex in the basin's Area 4 concession with the Rovuma LNG project.

Sales and purchasing agreements for 100% of the LNG produced by two liquefaction and purification facilities have also been submitted to the government of Mozambique for approval, the Italian energy company said. The LNG facilities, known as trains, will produce more than 15 million tons of LNG per year, it added.

Eni will lead the construction and operation of upstream facilities, with ExxonMobil leading construction and operation of natural gas liquefaction, Eni said.

Galp Energia SGPS S/A (GALP.LB), Korea Gas Corp. (036460.SE) and Mozambique's national oil company Empresa Nacional de Hidrocarbonetos also each hold a 10% minority stakes in the concession, Eni said.


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(END) Dow Jones Newswires

May 14, 2019 11:26 ET (15:26 GMT)

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