The Tango FLNG Exceeds Guaranteed LNG Production Levels at Eni’s Congo LNG Project

The liquefaction of natural gas onboard the Tango floating liquefied natural gas (FLNG) unit at Eni’s Congo LNG project has exceeded the guaranteed levels. Monitoring of the liquefaction process has shown actual production of LNG surpassing the guaranteed levels, with an adjusted annual equivalent production in excess of 0.6 million tons per annum, as reported by Exmar.

Exmar had sold the Tango FLNG to Eni in 2022, as part of a larger agreement that included Eni acquiring Exmar’s company Export LNG Ltd, which owns the Tango FLNG. The sale and purchase agreement for the Tango FLNG included a price adjustment clause tied to the performance of the unit, with a potential negative correction of $78 million and a maximum bonus of $44 million.

Based on the production data exceeding the guaranteed levels, Exmar is now entitled to a bonus, the exact amount of which is still being negotiated.

Operational Overview

Eni commenced the introduction of gas into the Tango FLNG unit moored in Congolese waters in late 2023. The Tango FLNG unit has a liquefaction capacity of approximately 1 billion cubic meters per year (BCMA) and is moored alongside the Excalibur Floating Storage Unit (FSU), utilizing a unique ‘split mooring’ configuration for the first time in a floating LNG terminal.

Additionally, a second FLNG facility with a capacity of around 3.5 BCMA is currently under construction and is expected to start production in 2025. Eni plans to market the entire volume of LNG produced by these facilities.

Overall, the performance of the Tango FLNG unit at Eni’s Congo LNG project has been remarkable, exceeding expectations and setting a strong foundation for future operations in the region.