Samsung, Partners Bag Coral FLNG Contract

South Korean Samsung Heavy Industries (SHI), along with a consortium partners French Technip and Japanese JGC, have bagged a $2.5bn deal to build an offshore facility for the Coral South floating liquefaction (FLNG) project in Mozambique, it said June 2.

The FLNG will be 439 meters in length, 65 meters in width and 38.5 meters in height and able to process 3.4mn metric tons/yr of LNG.

Eni June 1 confirmed that a final investment decision (FID) has been taken on its 3.4mn mt/yr Coral South FLNG project. Coral will be the first LNG project in East Africa, and one of the first FLNG projects developed, although it is not expected to produce until 2022.

The Coral field was discovered in May 2012 and is located in Mozambique Area 4. In March 2017 ExxonMobil confirmed it would buy, from Eni, a 25% indirect stake in the natural gas-rich Area 4 block offshore Mozambique for $2.8bn. It's understood that transfer has yet to be completed.

After completion, Eni will retain a 25% indirect stake while China CNPC's indirect stake will remain 20%. ENH, Portugal's Galp, and South Korean state utility Kogas, each have 10% direct stakes in the Area 4. Eni will lead the FLNG development, while Exxon will handle later onshore liquefaction phases.

Separately, SHI and Norway's ship classification firm DNV GL June 2 signed an agreement in Norway about development of a new LNG carrier design.

Shardul Sharma