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Mozambique Exports First LNG Cargo at Time of Soaring Prices

Mozambique Exports First LNG Cargo at Time of Soaring Prices

Mozambique is set to export its first cargo of liquefied natural gas, a first step towards the ranks of the world’s largest producers at a time of global energy crisis that is pushing the prices of this transitional fuel to record levels.

In this regard, LNG tanker British Mentor, operated by BP, is expected to arrive on 24 August at the new floating terminal that Eni is completing off the northern coast of Mozambique, according to ship tracking data compiled by Bloomberg news agency.

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The news agency website said that Eni did not immediately respond to a request for comment on the issue, but nevertheless said it was already planning a second floating export platform in Mozambique, which may be operational in less than four years.

Mozambique is fast-tracking its first export terminal as gas supplies following Russia’s invasion of Ukraine have catapulted prices in Europe, where countries such as the UK and Germany have warned that squeezing the fuel could trigger rationing and even trigger a recession.

Seeking to end their dependence on Russian gas, European buyers are paying a high premium as they compete with Asia to secure LNG cargoes ahead of the Northern Hemisphere winter.

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After almost a month at sea, the LNG tanker British Mentor has departed for the FLNG Coral Sul (floating liquefied natural gas, a floating liquefied natural gas facility) located in Cabo Delgado, Mozambique, where it is expected to load the first export cargo from the offshore production platform.

Eni’s $7bn Coral-South project was targeting the first exports by October. Despite the pandemic and Islamic State-linked insurgency in Mozambique, which ‘halted’ TotalEnergies’ $20bn onshore project, BP signed a deal in 2016 to buy all production for 20 years from Coral-Sul, which is designed to produce 3.4 million metric tonnes of LNG.

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