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.
Following the monitoring of the liquefaction of natural gas onboard the Tango FLNG, the actual production of LNG has exceeded the guaranteed levels, with an adjusted annual equivalent production in excess of 0.6 million ton per annum, according to Exmar.
Exmar sold Tango FLNG to Eni in 2022, as part of the agreement which saw Eni acquiring Exmar's company Export LNG Ltd, which owns the Tango FLNG.
The agreement for the sale and purchase of the Tango FLNG contains a price adjustment clause related to the performance of the Tango FLNG, which entails a negative correction of $78 million and a bonus of maximum $44 million.
Based on the production data, Exmar asserts that it is entitled to a bonus, amount of which is not yet agreed.
But after the news broke, an Eni company spokesperson added context to the matter in a released statement: "With Reference to the Congo FLNG project and to Exmar's press release dated 5 February 2025, Eni does not agree with Exmar’s statement regarding its alleged accrued entitlement to a positive price adjustment under the relevant contract, as the conditions for such adjustment are yet to be assessed pursuant to such contract."
To remind, Eni started 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 about 1 billion cubic meters per year (BCMA) and is moored alongside the Excalibur Floating Storage Unit (FSU), using an innovative configuration called ‘split mooring’, implemented here for the first time in a floating LNG terminal.
A second FLNG facility with a capacity of about 3.5 BCMA is currently under construction and will begin production in 2025. The entire volume of LNG produced will be marketed by Eni.