BP begins to ship gas from Mozambique

BP HAS begun shipping liquefied natural gas (LNG) from Mozambique’s vast new reserves, opening up supplies that could help ease Europe’s energy crunch. The consignment left the offshore Coral Sul plant – where deposits were found more than a decade ago – managed by Italian company Eni, in an LNG tanker bound for an unnamed European destination.

BP has a long-term deal to buy 100 per cent of the LNG output from the plant, which has the capacity to produce up to 3.4m tonnes per year.

Vladimir Putin’s invasion of Ukraine and the resulting disruption of Russian supplies to Europe have set off a race for gas supplies from elsewhere and renewed attention on Mozambique’s deposits.

BP said: “The start of production at the facility comes at an important moment, as LNG plays a key role supporting energy security.”

Analysts said the British Sponsor had indicated it was heading for the Suez Canal.

Alex Froley, an LNG analyst at the market intelligence group ICIS, said: “It could perhaps deliver to Spain or even in early December to the UK, or it might wait in the Mediterranean for further

‘The start of production comes at an important moment, as LNG plays a key role in energy security’

orders.” He added: “Europe is still the premium market for spot LNG over winter, although in the very near term the recent unusually mild weather in the region has resulted in a backlog of tankers waiting offshore to unload, as onshore gas prices have been lower than would be expected on the back of lower heating demand.”