Eni CEO says Mozambique Gas 'very competitive'
Thursday 23 April 2015
Low natural gas extraction costs in Mozambique will allow Italian energy company Eni SpA to produce liquefied natural gas (LNG) from the country that is very competitive, Chief Executive Officer Claudio Descalzi said on Wednesday.
Descalzi, speaking at IHS CERAWeek in Houston, said the company's LNG facilities would become operational in Mozambique in 2020. A final investment decision is expected before the end of 2015.
"Mozambique is good because the upstream side is not very expensive," he said. "It is fast and cheap, so it can be very competitive in the market."
He said wells could be brought online in the space of several weeks.
In a strategy update earlier this year, Eni said it plans to build an onshore LNG plant and two floating LNG plants in its giant Mamba field, with a combined capacity of 10 million tonnes per annum.
Mozambique, one of Africa's poorest countries, wants to begin lucrative exports before a wave of new supply from rivals enters the market.
Source: Reuters Africa (Reporting by Terry Wade; Editing by Jeffrey Benkoe)