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Eni sees Mozambique struggling to meet 2018 deadline on LNG plants

Eni sees Mozambique, its planned base for African output, struggling to meet a 2018 deadline to build plants allowing the country to ship liquefied natural gas.

“We’re working hard to reach” a final investment decision “as soon as we can,” Luca Bertelli, EVP of exploration at the company, said in an interview.

Completion by 2018 is “very challenging,” he said. “There’s no infrastructure, no logistics so it will take a bit of time.”

Eni has found 75 Tcf of gas in the offshore fields of its Area 4, more than the current reserves of Norway. Mozambique plans to build four LNG units with total capacity of 20 MMmtpy by 2018, making it the largest LNG export site after Ras Laffan in Qatar. It may cost $20 billion.

“Mozambique will be the base for production in the next decades,” Bertelli said. “I was part of Angola LNG but there they start with some logistics in place to build the plant.”

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