Italy's Eni targets startup of second Congo FLNG plant by end-2025

Italy's Eni plans to start up its second floating LNG export facility offshore the Republic of Congo by the end of 2025, it said July 20, following a meeting between CEO Claudio Descalzi and President Denis Sassou Nguesso.

The Republic of Congo joined the ranks of global LNG exporters in February when the maiden cargo was loaded at Eni's first FLNG facility, Tango, and delivered in April into Italy.

The Tango production facility has a capacity of some 1 Bcm/year, while the second FLNG plant will have a capacity of 3.5 Bcm/year, bringing the country's total to 4.5 Bcm/year.

In a statement, Eni said that during the meeting Descalzi updated the president on the progress of the Congo LNG project.

It said that since February this year -- just 12 months after being sanctioned -- the project had started exporting LNG "contributing to the global energy market and including Congo among the LNG exporting countries."

"With the second phase of the project, which will start at the end of 2025, gas exports from Congo will rise to 4.5 Bcm/year," it said.

The entire volume of LNG produced at the Congo LNG project -- which is based on gas reserves located in the Marine XII block -- will be marketed by Eni.

So far, three cargoes have been loaded at the Tango plant with one cargo shipped to Italy, one to Spain and a third having just been loaded, according to S&P Global Commodity Insights data.

Europe focus

In April last year, Eni said Congo LNG would supply new volumes of gas to international markets "focusing on Europe."

Descalzi said the project would "significantly contribute" to both Italian and European energy security and industrial competitiveness.

Italy was historically heavily dependent on Russian gas imports, with deliveries meeting as much as 40% of its demand in recent years, but imports fell sharply in 2022 following the Russian invasion of Ukraine.

Eni had been looking to accelerate work to begin LNG exports from the Republic of Congo as it eyes substitutes for Russian gas imports.

It comes as delivered spot LNG prices into southern Europe remain relatively high and continue to trade above $10/MMBtu.

Platts, part of S&P Global Commodity Insights, assessed the DES LNG Mediterranean marker at $10.41/MMBtu on July 19.

Eni has said previously that LNG exports would allow for the monetization of gas production "that exceeds Congo's internal market needs."