{"id":103458,"title":"BP began shipping liquefied gas (LNG), from Mozambique to Europe","publisher":"Share Talk","author":"sharetalk","published":"2022-11-14T17:36:03+00:00","modified":"2022-11-14T17:36:03+00:00","canonical_url":"https://www.share-talk.com/bp-began-shipping-liquefied-gas-lng-from-mozambique-to-europe/","markdown_url":"https://www.share-talk.com/bp-began-shipping-liquefied-gas-lng-from-mozambique-to-europe.md","json_url":"https://www.share-talk.com/bp-began-shipping-liquefied-gas-lng-from-mozambique-to-europe.json","category":"Blogs","categories":["Blogs","Energy"],"tags":["BP","crisis","ENERGY","Eni","Europe","liquefied gas","LNG","Mozambique","Russian","Suez Canal","supplies","Vladimir Putin"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&ssl=1","format":"news","language":"en-GB","content":"BP began shipping liquefied gas (LNG), from Mozambique’s vast new reserves opening up resources that could ease Europe’s energy crisis.\n\nIt was the first export shipment to sail, a landmark for one of Africa’s poorest countries. More than a decade ago, huge offshore deposits were discovered.\n\nThe consignment was taken to the Coral Sul offshore plant by Eni in an LNG tanker named British Sponsor, bound for an unknown European destination.\n\nBP has a long-term agreement to purchase 100% of the LNG output from this plant. It has the potential to produce as much as 3.4 million tonnes annually.\n\nVladimir Putin’s invasion of Ukraine and the resulting disruption to Russian supplies to Europe has sparked a race for gas supplies and renewed interest in Mozambique’s resources.\n\nEnergy giants Total and ExxonMobil were attracted to the 2010 discovery of large resources in the Rovuma basin off the coast of northern Mozambique.\n\nHowever, a violent Islamist insurgency stopped their projects after militants from the Islamic State group took over the area. Coral Sul’s safer offshore location has allowed them to continue setting up.\n\nBP stated that the facility’s production began at a crucial moment because LNG plays a critical role in energy security.\n\nThe International Energy Agency warns that Europe’s LNG markets will be facing “unprecedented uncertainty in supply” due to sanctions following Russia’s invasion. It is impossible to rule out a complete shutdown of pipeline flows to Europe.\n\nClaudio Descalzi (Eni’s chief executive) stated that the new supply source could contribute significantly to Europe’s energy security. He also said that the increased diversification of supplies would help in supporting a just transition.\n\nSecurity and oil sources agree that the situation in northern Mozambique is improving over the last year. However, there are still occasional attacks. Total still needs security guarantees to resume work on its project.\n\nAnalysts believed that the British Sponsor indicated it was headed for the Suez Canal.\n\nAlex Froley is an LNG analyst with the market intelligence group ICIS. He stated that it could deliver to Spain, the UK or in December. Or, it might stay in the Mediterranean to receive additional orders.\n\nHe continued, “Europe remains the premium market for spot LNG over the winter,” but in the short term, the unusually warm weather in Europe has caused a backlog in tankers offshore waiting to unload. Onshore gas prices are lower than expected due to lower heating demand.\n\nFirst Cargo Progetto Coral South. Photo Via Eni.com"}