Korea Gas Corp. (KOGAS) has signed a conditional sales contract with British Petroleum (BP) in London on October 4 (U.K. time) to supply around 330,000 tonnes of liquefied natural gas (LNG) from the Area 4 block of the Mozambique gas field, along with its partners.
Under the deal, KOGAS will sell 10 percent of the gas produced from the Coral South floating LNG (FLNG) facility to be developed in the Area 4 block, which will have a capacity of about 3.3 million tonnes of gas per year, to BP over a 20-year period.
The agreement was also signed by the partners of the group in the Area 4 block in Mozambique – Italy’s state-run energy group ENI, Galp Energia of Portugal and the Mozambican state company ENH. It will be legally binding when all the participants make a final decision on investment in the block that is scheduled for later this year.
A large-scale gas field, which has reserves of 1.8 billion tonnes until 2014, was discovered in the Area 4 block. It is the equivalent to seven years of global LNG consumptions of 250 million tonnes as of 2015. Accordingly, various projects in all sectors of natural gas value chain, such as gas field development, liquefaction base consturction and operation, LNG production and sales, are now being carried out.
The ENI group is the Area 4 block operator with an indirect 50% owned by ENI East Africa, which holds 70% of that block, the remaining partners are the Galp, ENH and KOGAS with 10% each.