Bloomberg News

Enid Plans $50 Billion Investment in Offshore Mozambique Gas

December 09, 2011

(Updates with CEO comment in third paragraph.)

Dec. 8 (Bloomberg) -- Eni SpA expects to invest $50 billion developing natural gas off the coast of Mozambique and plans to begin producing fuel there by 2018, Chief Executive Officer Paolo Scaroni said.

Italy’s biggest oil company estimates the Mambo deposit to contain 20 trillion cubic feet of gas, he said today in Doha, Qatar. Eni may transport the gas to market through a pipeline or by converting it into liquefied natural gas and shipping it to Asia. The producer may also sell the fuel locally in the form of compressed natural gas, Scaroni said. Eni announced the field’s discovery in October.

“Our feeling is it would be a super-giant gas field and is well-placed to supply Asia by LNG,” he said at the World Petroleum Congress in Doha. Europe isn’t a likely destination for any gas from Mambo, Scaroni said.

Eni, Anadarko Petroleum Corp. and BG Group Plc together with partners have found trillions of cubic feet of gas in waters off East Africa. The deposits are large enough to justify construction of at least eight LNG production trains, according to estimates by the companies. The producers may ship African gas to Asia and compete with fuel from Australia, where Royal Dutch Shell Plc, Chevron Corp. and other companies plan to invest about $250 billion in gas projects.

--Editors: Bruce Stanley, Rachel Graham

To contact the reporter on this story: Anthony DiPaola in Dubai at adipaola@bloomberg.net; Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net; Will Kennedy at wkennedy3@bloomberg.net


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