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The price of Mozambique LNG would fit well into European gas markets when Italian company Eni ships its first cargo in 2020, Claudio Descalzi, CEO of Eni, said in a keynote address Wednesday at IHS Cambridge Energy Research Associates (CERA) week.
Europe has been using only 25% of its LNG import and regasification capacity because it has been relying more on lower-priced pipeline gas and coal.Mozambique LNG would be priced correctly to fit European markets because the gas exploration and production costs there are very low.
US LNG prices would fit better into the Asian markets, he said, leaving Europe open to supply from Mozambique. He also said that it takes only three to four weeks to drill a well in Mozambique, allowing production to be increased quickly and economically.
Descalzi stated that Eni is expecting to get its first cargo of LNG from Mozambique from the Rovuma Basin by a 2.5 million mt/year floating liquefaction train, which will be followed by two onshore trains later. He concluded saying that the Eni's gas resources in Mozambique are enough to satisfy the whole Italian demand for 30 years.
Source: Platts
