South Korean quartet boasts major role in Coral South FLNG project

July 4, 2017

The Export-Import Bank of Korea (Korea Eximbank) said it will provide $1 billion in project financing for the Eni-led Coral South FLNG project offshore Mozambique.

In addition to Korea Eximbank’s $1 billion, Korea Trade Insurance Corporation (K-sure) will provide $0.8 billion, making up 22.5 percent of total project costs or 36 percent of project finance.

Other South Korean companies taking participation in the Coral South FLNG project are Samsung Heavy Industries and Kogas.

SHI is participating in the project as part of a consortium selected as an EPC contractor. The consortium comprises TechnipFMC and Japan’s JGC. The shipyard will build the FLNG unit that will be capable of processing around 3.4 million tons per year of LNG.

The remaining South Korean company, Kogas, holds a 10 percent stake in Area 4, with Italy’s Eni as operator holding a 70 percent stake through Eni East Africa. Portugal’s Galp Energia and Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH), each hold 10 percent stake.

Eni holds 71.4 percent shares of Eni East Africa with China’s CNPC holding 28.6 percent, however, in March 2017 Eni signed an agreement to sell 50 percent of its shares in EEA to ExxonMobil.

LNG World News Staff