Eni S.p.A. E, an Italian integrated energy company, is planning to drill as many as six development wells that will supply natural gas to its Coral North floating liquefied natural gas platform offshore Mozambique. The company mentioned that it will start drilling the wells in November this year, with production expected to start by 2028.
The development wells will enable Eni to increase production from Mozambique’s offshore reserves. The company considers Mozambique a strategically attractive resource due to its geographical positioning and proximity to premium LNG-importing markets. Eni noted that Mozambique could supply these markets, particularly Asian markets where demand for LNG remains elevated, without relying on critical maritime transportation routes, such as the Strait of Hormuz. The Strait of Hormuz has been facing supply disruptions since the start of the conflict between Iran and the United States earlier this year. It is a critical chokepoint that accounts for nearly one-fifth of the global energy flows. This geographic advantage could enhance Mozambique’s strategic importance in the global gas market.
The company highlighted that the production from the new development wells is expected to support output from the Coral North platform. This could raise E’s output in the African country to nearly 7 million metric tons per annum.
Eni was previously evaluating the construction of a third floating liquefied natural gas (FLNG) facility offshore Mozambique to extract and produce from the prolific reserves in the Rovuma Basin. An Eni spokesperson noted that this FLNG project is currently in the pre-front-end engineering and design stage (pre-FEED), which involves assessing the technical feasibility and associated costs. The stage will enable the company to move toward a final investment decision on the project. However, the company has not provided any details regarding a targeted FID.
Other Energy Players in Mozambique's Rovuma Basin
Alongside Eni, Mozambique’s Rovuma Basin hosts two other major LNG projects operated by TotalEnergies SE TTE and ExxonMobil Holdings Corporation XOM.
TotalEnergies’ Mozambique LNG project is being developed in Area 1 of the Rovuma Basin. The company has faced several setbacks with this project, but it remains on schedule to begin LNG production in 2029. The Mozambique LNG project is expected to have a production capacity of 13 million tons per year.
The Rovuma LNG project is operated by ExxonMobil in Area 4 of the Rovuma Basin. Its partners in Area 4 are ENH, Eni, Korea Gas Corporation (KOGAS), China National Petroleum Corporation (CNPC) and ADNOC subsidiary XRG. The company is currently working toward a final investment decision (FID) on the project.
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