The price of Mozambique LNG would fit well into European gas markets when Italian company Eni ships its first cargo in 2020, Claudio Descalzi, CEO of Eni, said in a keynote address Wednesday at IHS CERAWeek.
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Europe has been using only 25% of its LNG import and regasification capacity because it has been relying more on lower-priced pipeline gas and coal.
Mozambique LNG would be priced correctly to fit European markets because the gas exploration and production costs there are very low.
US LNG prices would fit better into the Asian markets, he said, leaving Europe open to supply from Mozambique.
It takes only three to four weeks to drill a well in Mozambique, allowing production to be increased quickly and economically, he said.
Eni expects to get its first Mozambique LNG from a 2.5 million mt/year floating liquefaction train in the Rovuma Basin, followed by two onshore trains later, Descalzi said.
Eni's gas resources in Mozambique could fill all of Italy's demand for 30 years, he said.