Eni Mulls Mozambique LNG Supply Deal

Italian oil and gas group Eni is holding discussions with a potential buyer of liquefied natural gas (LNG) supply from its floating export project in Mozambique, an executive said on Thursday.

"We are in discussions with a potential buyer, a key term agreement has been finalised," which is forming the basis for discussions on a binding sales and purchase agreement, Umberto Vergine, Eni's Chief Midstream Gas and Power Officer said.

Eni's proposed floating LNG production plant off Mozambique, which it expects to sanction after the summer, will draw gas from the Coral gasfield and liquefy it onboard for transport on ships to world markets.

Eni is also building a bigger onshore LNG production facility in Mozambique.

(Reporting by Oleg Vukmanovic