Eni, Sasol eye Mozambique GTL

GTL in view: Eni CEO Claudio Descalzi

Italian major Eni is teaming up with Sasol and Mozambique’s Empresa Nacional de Hidrocarburos (ENH) to conduct an initial study into a large gas-to-liquids (GTL) facility in the gas-rich East African nation.

The trio has announced the joint pre-feasibility study for a large GTL facility that would utilise gas from Eni’s plays in the Rovuma basin.

"The proposed GTL facility firmly aligns with Mozambique's gas master plan goals, and, if successful, will go some way to accelerate socio-economic development in the country and the broader region,” said Sasol chief executive David Constable.

The agreement swiftly follows a similar one signed late last month between Anglo-Dutch supermajor Shell and ENH. That agreement not only covers a pre-feasibility study for a GTL plant but also the possibility of joint bidding for exploration acreage.

Eni is operator of Area 4 offshore Mozambique, which is estimated to hold about 87 trillion cubic feet of gas in place and where the third and final exploration period expires in January 2015.

Upstream reported last week that the Italian has started to evaluate initial proposals from contractor groups vying to provide a floating liquefied natural gas vessel in the Rovuma basin.

Project sources said Daewoo Shipbuilding & Heavy Engineering has teamed up with KBR to pursue the FLNG contract.

Its rivals will be Samsung Heavy Industries, which has joined forces with Technip and JGC, and Hyundai Heavy Industries, which has thrown its lot in with Chiyoda and Saipem.

The contenders expect to hear next month at the earliest whether they have pre-qualified to take part in the FEED contest.

If the preferred bidder is chosen in the first half of 2016, that would indicate a startup date of 2019 or 2020, depending on the construction schedule.

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