Africa-Press – Mozambique. Galp Energia’s gas production could triple with the help of the liquefied natural gas (LNG) project in Mozambique. An analysis by Bloomberg Intelligence indicates the reinforcement of the activity, as well as the advantages in terms of cost efficiency, given the possibility of replicating concepts already used by the Portuguese company in Brazil.
“The Coral LNG project – the first to capitalize on the giant natural gas discoveries in Mozambique – could triple Galp’s gas production. The company’s floating LNG plant should have a capacity of around 3.4 million tons per year,” an analysis signed by Salih Yilmaz and cited by the Portuguese newspaper ‘Negócios’ observes.
The company led by Andy Brown sees Mozambique as its second biggest engine of growth, after Brazil. And it expects production to start in the next decade. Of the 16 billion cubic feet of Coral reserves, five will form part of the first phase.
The consortium comprising Eni, ExxonMobil and CNPC operates in the Rovuma Basin, where it will develop the Coral LNG project. The Portuguese company Galp, South Korea’s Kogas and Mozambique’s ENH each hold 10%.
“Galp’s upstream production mix leans heavily in favour of oil, at around 90%, while peers such as OMV and Repsol are more focused on natural gas. Galp’s gas production is expected to increase with Coral LNG and other projects in Mozambique, potentially helping to keep pace as the sector shifts focus to the energy transition,” Bloomberg Intelligence reveals.
It adds that Mozambique’s natural gas projects could be remarkably cheaper if they were able to replicate a concept used in Brazil’s pre-salt oil sites. This had happened with Petrobras, which is reducing expenses by using a single project template in several virtually identical offshore production units.
“Galp’s experience in these projects can be valuable for Mozambique. As the African country’s gas is pure methane and free of impurities, the efficiency of investment and processing costs would also be a benefit,” reads the report.
Last week, Galp Energia announced to the market that its net income in the third quarter of this year stood at €161 million, leaving behind the losses registered in the same period of 2020. Oil exploration and production rose, boosting the numbers between June and September.
The oil company also improved its outlook for the fourth quarter of this year, riding on the performance of oil prices. It forecasts that its EBITDA will reach €2.3 billion, representing a net increase of €622 million in the fourth quarter, and above that recorded between June and September.
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