Eni’s FLNG projects make Mozambique an export leader

Mozambique

Marica Calabrese, general manager of Eni Rovuma Basin, talks to The Energy Year about reaching significant milestones in the Coral Sul FLNG project and the company’s upcoming plans for further gas development and energy transition initiatives. Eni is a multinational energy company operating the Coral Sul FLNG in Mozambique.

This interview is featured in The Energy Year Mozambique 2024

Can you give us an overview of the current operational status of the Coral Sul FLNG Project?
We are proud to see continued success from the Coral Sul project. Following the first shipment of LNG cargo in November 2022, 2023 was the year we reached the production plateau. Production is now stable at the plateau rate and the plant is operating at its maximum capacity. We have delivered cargoes of LNG so far, and nine cargoes of condensate.
This is a very exciting achievement both for Eni and for the country. Thanks to Coral Sul, Mozambique has joined the global elite of LNG exporters.

What advantages does Mozambique offer for LNG production?
I wish all the reservoirs in my career were like the ones in Mozambique. They are giants, and they contain very clean gas with minimal CO2 and H2S content. The excellent quality brings environmental benefits, lowers the cost of production and gives Mozambique a good competitive edge.
Besides having top-quality resources, Mozambique is in a strategic geographical position. The country is centrally located among the world’s LNG markets, which is very beneficial for marketing as it allows Mozambique to sell LNG wherever the price is best, be it in Europe or Asia.
From a regional perspective, Mozambique’s location in southern Africa offers further potential for gas exports and the establishment of the country at the centre of a regional hub for LNG export infrastructure. I believe the nation’s authorities and investors have the opportunity to leverage these advantages for the benefit of the country and its people.

What are the main objectives Eni has set for 2024 and the years to come?
Having achieved the production plateau at Coral Sul, our target is to maintain it for the next 20 years. However, Coral Sul is only the beginning. We aim to double our production with the development of Coral Norte and are working hard to replicate our success.

How is Coral Norte progressing and how will it impact Mozambique’s LNG production?
We are working towards two key milestones on the Coral Norte project: reaching an agreement with our partners and securing government authorisation. These are crucial steps and we are optimistic we will be able to complete them as soon as possible. Towards securing financing, we anticipate using the same approach as for Coral Sul and we have already started having discussions with several banks.
Both projects align with our sustainability goals. They are designed to have exceptionally low emissions, and we believe the LNG produced will be an enabler for energy transition. Demand for LNG is projected to continue growing in the coming years, and there is room in the market not only for Coral Sul and Coral Norte but for additional projects as well.

What would you highlight from your experience working with the Mozambican government?
The importance of Mozambique within Eni’s global portfolio is undeniable, and we are incredibly pleased with the quality of our partnerships in the country. We have encountered highly skilled individuals at all levels and a collaborative environment that fosters open discussion of plans and ideas.
Our partners are receptive to suggestions for improvement, and we work together to identify solutions that benefit both Eni and Mozambique. The authorities are not just receptive. They’re actively engaged – eager to listen to our proposals and work with us.

What are some of Eni’s energy transition initiatives in Mozambique?
Eni is emphasising carbon offsets in Mozambique. As we recently announced, the company is launching the Great Limpopo project, the largest initiative ever developed in Mozambique to protect forests and counteract deforestation causes in line with the REDD+ framework. Eni is also targeting the provision of clean cooking solutions for 20 million people by 2030. We are distributing carbon-efficient cookstoves across the country and launching a project to boost the domestic production of vegetable oil for biorefining. By developing an agribusiness value chain, we can empower hundreds of thousands of farmers.

Does Eni have initiatives in place to promote local content in its projects?
The Coral Sul project is not just the world’s first deep-water floating LNG facility but also a training ground for Mozambican workers. Many young Mozambicans are gaining valuable experience there, and the project offers valuable opportunities to local SMEs.
We have organised workshops with companies interested in our tenders to explain to them the process and address potential challenges in securing contracts. Through engagement, we empower the community to participate.
In the early stages of Coral Sul, we launched Program 200, through which we hired 200 young Mozambicans and sent them to Italy for training in various areas of competence. Some of them spent a few months in the country, while others spent two years, attending university courses. We invested in them, and they are now valued employees.

How does Eni align its projects with sustainability commitments?
Driven by our dual flag approach, entailing mutual benefits with the countries and communities where we operate, and in line with the UN’s 2030 Agenda for Sustainable Development, we are deeply committed to sustainability initiatives.
In addition, alliances for development are one of the three levers of our integrated business model, alongside decarbonisation and operational excellence. We’ve integrated the sustainable development goals into our core mission, governance structure and daily operations.
With the aim of improving the quality of life of the people in the areas where Eni operates, these aspects are all integrated in local development programmes. These include local content aiming to maximise the contribution to the local economy, transferring skills and knowledge to the local workforce, activating the local supply chain and implementing local development projects to foster income-generating activities in local communities.
Local development projects focus on priority sectors related to basic social services, such as energy access, quality education and vocational training; water, hygiene, sanitation and health; and economic diversification and capacity-building, with a particular focus on the agriculture and fishing sectors.

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