Eni (E) to Conclude FID on Mozambique LNG Project by Mid 2024
Eni SpA E, Italy's leading energy company, is aiming to reach a milestone for its second floating liquefied natural gas (LNG) project in Mozambique, with a final investment decision (FID) anticipated by the end of June 2024, per a Reuters report.
According to the report, Eni's first LNG project, Coral Sul, transformed the economically challenged African nation into a worldwide LNG producer and exporter in November 2022. The upcoming project is set to enhance Mozambique's LNG production that currently boasts an annual capacity of 3.5 million metric tons.
Eni serves as the operator of Coral Sul, with more than two-thirds of the venture being collectively owned by Eni, Exxon Mobil Corporation XOM and China's CNPC. The remaining 30% is shared among Portuguese energy company Galp, Korean Gas Corp. and Mozambique's state oil entity ENH, each holding a 10% stake.
The Coral field, situated in Mozambique's offshore Rovuma basin, is believed to contain approximately 500 billion cubic meters of natural gas. According to the source, Coral Sul is presently yielding 3.5 million tons of LNG, and the introduction of the new LNG vessel could potentially double this output.
Eni's chief executive officer Claudio Descalzi, along with Italy’s prime minister Meloni, is scheduled to travel on a diplomatic mission to Mozambique and Congo in the upcoming week. Their visit is aimed at strengthening the bilateral relations between Italy and these nations, where Eni is actively involved in developing LNG ventures.
Zacks Rank & Key Picks
E currently carries a Zack Rank #5 (Strong Sell).
A couple of better-ranked stocks in the energy sector are Matador Resources Company MTDR and Pioneer Natural Resources Company PXD, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2023 and 2024 over the past seven days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Its total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
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