Africa Oil & Power (AOP) recently spoke with Roberto Dall’Omo, Managing Director of Eni Rovuma Basin BV, about the current challenges facing the Liquefied Natural Gas (LNG) market and Eni’s development plans for the Rovuma LNG project and Floating LNG platform in Mozambique.
Dall’Omo explained that the global LNG market is currently characterized by oversupply and reduced demand. In conjunction with sustained low oil pricing, which in turn forced low pricing within the gas industry, increased export capacity by the U.S., Australia and Russia has led to a highly competitive and price-reduced gas market.
“All these factors contributed to an excess supply in the market, which has led to a lowering of the price of LNG,” noted Dall’Omo. “Finally, the COVID-19 pandemic also caused a reduction in market demand for LNG, which meant that throughout 2020 and due to all of these factors, the pricing of LNG reached historic lows.”
Additionally, Dall’Omo gave insight into Eni’s plans for the development of its LNG project in Mozambique’s Rovuma Basin. With an ambitious timeline driven by the arrival of a Floating LNG Platform, Eni is optimistic that it will achieve first LNG production by 2022.
“We know that we can count on the support of the Mozambican Government, which has been very attentive regarding these activities and very engaged in the development of the gas project, which will benefit all of Mozambique,” stated Dall’Omo. “The Government is a good partner, as well as our other partners for Area 4 including ExxonMobil, CNPC, Galp, KoGas and ENH. With this support, we are certain and determined that we will achieve this first production batch of LNG in Mozambique by 2022.