Italian energy giant Eni is expected to make a final investment decision (FID) on its Coral FNLG project offshore Mozambique by the second half of 2015.Eni planned to build the first FLNG in Mozambique and in October 2014 awarded a front-end engineering and design contract to the KD consortium of KBR and Daewoo Shipbuilding and Maritime Engineering. Eni is the operator of area 4 Deepwater block in the Rovuma basin offshore Mozambique. Discovered in 2011 by Eni the area 4 block in Rovuma is estimated to be holding 85 Tcf of gas in place.
Production on the block is schedule to commence in 2020 if the initial schedule is not altered. Analysts say it is important for ENI and Mozambique to take the FID by the second half of 2015 as LNG projects in East Africa are set to face competition from LNG projects in Australia, which are also expected to come on-stream from 2020. As all these projects are expected to compete for a share of Asia, alongside traditional sources such as Qatar, the faster they are completed the better for the investors.