Eni is pursuing Congo FLNG development amid European countries are struggling to secure more energy sources outside Russia. The Italian operator has signed framework agreement with the Republic of Congo to boost joint E&P operations and increase natural gas exports towards Europe.
Gas production from Marine XII block located 20-km offshore Congo which holds an estimated 1.3 billion bbl of oil and 6 TCF of natural gas, dedicated to the proposed FLNG project as the main feedgas source.
Currently, Nené and Litchendjili fields situated in the Marine XII block are producing 28,000 bbl/d of oil and 1.7 MMCM/D of gas. Three further discovered reserves have yet to be tapped, with peak production for oil estimated at over 100,000 bbl/d by 2025 and twice the current quotas for gas.
Eni plans to monetize the block’s associated gas through a two-phase, 3.5 MMT/Y FLNG project for completion by Q2 2023 and Q2 2024, respectively.

 

Meanwhile, participation of Russian Lukoil in the Marine XII block could complicate the project’s upstream development financing and EPC contracting due to the US and EU sanctions on Russia, Global LNG Info’s Analytic said in its recent multi-client consulting report, adding that EPC companies may be concerned that Lukoil would face difficulties to raise the money it will need to pay for its share of the development works.
“In Sept. 2019, Private-owned, London-based New Age has sold up its 25% non-operated interest in the offshore Marine XII block to Lukoil under a US$800 million contract.” The block’s other shareholder are Eni (operator) 65% and National Petroleum Company of the Congo (SNPC) 10%.
However, Global LNG Info’s Analytic has reminded that the EU and US might consider the sanctions waver for the Congo FLNG as the project aimed to supply LNG to Europe. “They did the same for Shah Deniz-2 gas development and exports project in Azerbaijan where Iran’s sanctioned NICO was one of the project’s partners.”
According to the Global LNG Database®, for the project’s midstream, Eni has already signed an agreement with Exmar for the purchase of the shipping company’s 0.6 MMT/Y Tango floating liquefaction facility (Tango FLNG).
Eni has also signed a Heads of Agreement (HoA) with New Fortress Energy for the deployment of NFE’s 1.4 MMT/Y Fast FLNG solution for the project for a period of 20 years.

 

Related posts by Global LNG Info:
Eni to utilize Tango FLNG for its Congo’s LNG project
NFE, Eni agree to deploy “Fast LNG” in Congo

 

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