Possible Energy Cooperation Between Italy and Mozambique

Possible Energy Cooperation Between Italy and Mozambique

/ Policy & Regulations / Thursday, 07 July 2022 09:22

Italian President Sergio Mattarella has met with his Mozambican counterpart Filipe Nyusi in Maputo to discuss gas supplies as Rome seeks to reduce its reliance on Russia.

Mattarella praised energy cooperation between the two countries during the visit, which came ahead of the opening of an offshore gas project run by Italian energy company Eni in Mozambique's insurgent-laden north.

"The forthcoming start of the export of liquefied natural gas from the Coral Sul plant, managed by Eni, is an important milestone that testifies to how precious our collaboration is," Mattarella stated. 

Coral Sul, the first floating liquefied natural gas (LNG) facility deployed in deep waters off Africa, arrived in Mozambique in early January. Once operational, it will be able to produce 3.4 million tons of LNG a year.

Last month, Eni said the plant was "ready to achieve its first LNG cargo" in the second half of 2022.

Russia's invasion of Ukraine has injected urgency into efforts around the world to develop new energy sources as Western countries try to reduce their reliance on Russian gas.

Italy, one of Europe's biggest consumers of natural gas, has, in recent months, stepped up diplomatic contacts to secure alternative supplies – and Mattarella, who holds a largely ceremonial role, has been helping with that effort.

In May, he played host to Algerian President Abdelmadjid Tebboune for the signing of a memorandum of understanding between Eni and Algeria's Sonatrach to boost gas exploration in the North African nation.

A month earlier, the two countries had signed a major agreement regarding increased gas supplies. Italy has also held discussions with Qatar and Angola.

Mozambique has set high hopes on the vast natural gas reserves discovered in its Cabo Delgado province in recent years, attracting major international companies. But there have been doubts over the viability of LNG exploration sites off its northern coast, as the region has been hit by insurgency waged by Islamic State-linked militants.

While Eni has said the insurgency has not affected operations, French oil giant Total suspended work on a massive $20 billion LNG project after a militant attack on the coastal town of Palma in March of last year.

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