Galp’s CEO considered this Monday, October 24, that the Coral Sul project, underway in the Rovuma basin in Cabo Delgado, will put the country “on the map of liquefied natural gas, as an important global supplier”, complementing the United States of America and Qatar.
“[The] Coral Sul project will put Mozambique on the LNG [liquefied natural gas] map as an important global supplier. LNG remains a crucial part of energy supply, now and in the future, and Mozambique will play a central role, complementing the United States of America and Qatar,” said the CEO of Galp, Andy Brown, in a video recorded regarding the Portuguese oil company’s third quarter and first nine months of the year results.
The Coral Sul project consists of building a floating natural gas liquefaction unit (FLNG), and is the first development project related to the discoveries made in Area 4 of the Rovuma basin in Mozambique.
Galp holds a 10% stake in the consortium for the development of Area 4. Eni is the operator with an indirect participation of 50%, through Eni East Africa, which holds a 70% stake in Area 4.
Kogas and the National Hydrocarbons Company (ENH) have a 10% stake each in the project, while the China National Petroleum Corporation (CNPC) has a 20% indirect stake through Eni East Africa.
In the same video, Andy Brown reiterated that the company is finding alternative and competitive sources of natural gas, although the impact of the floods in Nigeria on contractual deliveries is not yet known.
“While it is still uncertain what the impact of this event [flooding in Nigeria] may be, having pre-sold the volumes, we are actively finding alternative competitive sources of gas,” the CEO said.
Last week, Galp informed Portugal’s Securities and Exchange Commission that it had received from Nigeria LNG, the main national supplier of natural gas, “a force majeure notice based on the widespread flooding being experienced in Nigeria, causing a substantial reduction in the production and supply of liquefied natural gas”.
Andy Brown said, however, he expects “gas supply and commercial contributions for 2023 to improve significantly”.
Galp reported a profit of 608 million euros (37.8 billion meticais) in the first nine months of the year, up 86% on the same period last year, and 187 million euros (11.6 billion) in the third quarter, up 16%.