(Ecofin Agency) - Galp Energia has revealed that its board of directors has approved the investment for the Coral South area which is the first development related to the discoveries made in the Area 4 of Mozambique’s Rovuma basin, the company said on its website.

Galp’s approval of the investment is another breakthrough towards the Final Investment Decision (FID) on the project, which, aside needing conclusion and signature of all relevant documentation, is subject to the approval of the project by the other partners in the consortium, finalizing of the financing of the project and approval by the Mozambican government of the financing conditions related to the Empresa Nacional de Hidrocarbonetos (ENH)’s carry.

The Coral South project includes the construction of a floating LNG (FLNG) unit with a liquefaction capacity of over 3.3 million tpy of LNG. The unit is to be connected to six subsea wells and will be situated in the southern section of the Coral discovery. This is located within Area 4, and contains about 16 trillion cubic feet of gas.

The Area 4 is estimated to contain around 85 Tcf of gas, including the large Mamba discovery.

Eni is the block operator and holds a 50% interest in the Area 4. Other partners, Galp Energia, KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), hold each 10% stake, while CNPC holds remaining 20%.

Anita Fatunji