Eni Reaches Financial Close for Coral South FLNG Hub

ENI SpA (ENI.MI) has finalized the financial agreements needed to start construction on the Coral South floating liquefied natural gas hub in Mozambique's s Area 4 off-shore block, it said Wednesday.

The Italian oil major said that, together with its Area 4 partners, it has raised about $4.7 billion through seven separate facilities.

The Coral South project is the first development to receive governmental approval to exploit the Rovuma natural gas basin in waters off the Mozambican coast.

After commissioning, the plant should produce 3.4 million tons of liquefied natural gas a year, which will be sold directly to BP PLC (BP.LN), according to Eni.

The Italian company will operate the plant through its Eni East Africa subsidiary, which is jointly owned by Eni and Exxon Mobil Corp. (XOM), and holds a 50% stake in Area 4. China National Oil and Gas Exploration holds another 20%, while Mozambican national oil producer ENH, Galp Energia SA (GALP.LB) and Korea Gas Corp. (036460.SE) each hold stakes of 10%.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

December 06, 2017 09:54 ET (14:54 GMT)