BP has agreed a 20-year deal with Eni of Italy to buy liquefied natural gas from a big new field off the coast of Mozambique in a step toward the south-east African country’s emergence as a force in global energy production.


The project is expected to have a capacity of more than 3.3 million tons a year, BP said, without disclosing the commercial terms of the deal. At current prices on the short-term Asian LNG market of about $6 per million British thermal units, the agreement would be worth about $1 billion a year.

 

Mozambique’s government is pushing forward with Eni’s 3.4 mtpa FLNG project in a determined move to shake off perceptions the country’s debt crisis will stall its LNG developments.


Mozambique’s government is pushing forward with Eni’s 3.4 mtpa FLNG project in a determined move to shake off perceptions the country’s debt crisis will stall its LNG developments.


The Council of Ministers approved the sales-and-purchase agreement (SPA) for the offtake of LNG from Eni’s Coral FLNG last week. It also gave Eni the right to start negotiations with lead bidders for the project’s key EPC contracts.