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    Eni buys FLNG for Congo LNG exports


The vessel will be deployed at the offshore Marine XII block.

by: NGW

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Eni buys FLNG for Congo LNG exports

Italian energy major Eni has bought the Tango floating LNG (FLNG) plant that will be used to export LNG from the Republic of Congo from Belgium's Exmar, in a deal worth up to $694mn, the companies announced on August 5.

Built in 2017, the Tango FLNG vessel can treat up to 3mn m3/day of gas and produce 0.6mn metric tons/year of LNG, and will be deployed to exploit resources at the offshore Marine XII block. Eni said its acquisition would enable the company to fast-track the block's development, noting that the facility was on track to start up in the second half of next year, once it has been hooked up to infrastructure at the site.

Exmar estimated the value of the transaction at between $572mn and $694mn, depending on how Tango FLNG performs on site during its first six months of operation. It added that the transaction was due to be closed in the second half of this month.

All told, LNG production at Marine XII is set to reach 3mn my/yr at full capacity. As part of the project, Eni has also reached a 10-year charter deal with Exmar for a floating storage unit that will be converted from an LNG carrier.

The Republic of Congo is known mostly as a source of oil production, but it also holds substantial natural reserves, estimated at at least 10 trillion ft3, or 283bn m3, at the end of 2021. But much of the total represents associated gas that developers to date have mostly re-injected into offshore oilfields to maintain reservoir pressure.

Gas from Marine XII is already used as feedstock for two onshore thermal power plants. But Eni revealed plans in February to export LNG as well, so that the project could benefit from the global gas supply crunch.