Eni Buys Exmar's Tango FLNG for Use in the Congo

Italian oil major Eni announced it has signed a deal to to buy the Tango FLNG floating liquefaction plant from Belgium-based Exmar for use in the Republic of Congo. Under the agreement, Eni will acquire Exmar's company Export LNG Ltd, which owns the Tango FLNG.

Tango FLNG, delivered in 2017, has a storage capacity of 16,100 cubic meters of liquefied natural gas (LNG) and a liquefaction capacity of up to 0.6 million tons per year.

The value of the transaction is in a range of $572 and $694 million, depending on the unit's performance during the first six months on site, Exmar said. Tango FLNG will be made available to Eni at the closing date of the transaction, which is expected in the second half of August 2022.

The facility will be deployed by Eni in the Republic of Congo, as part of the activities of the natural gas development project in the Marine XII offshore block in the Republic of Congo.

Tango FLNG will begin its activity in Congo in the second half of 2023, following the completion of mooring and connection works necessary to tie with the Marine XII network and infrastructure, Eni said. LNG production from Marine XII is expected to begin in 2023, and when fully operational it will provide volumes in excess of 3 million tons/year (over 4.5 billion cubic meters/year).

As part of the project, Eni and Exmar also agreed a 10-year charter for a floating storage unit (FSU), which will be based on the conversion of a LNG carrier.

Exmar said it will provide operations and maintenance services for both Tango FLNG and the FSU, and through separate contracts it will provide engineering services for the project.

"The acquisition of this facility allows the development of a fast-track model capable of seizing the opportunities of the LNG market. In addition, the high flexibility and mobility characteristics of the Tango FLNG will favor the development and enhancement of Eni's equity gas by accelerating production start-up time," Eni said.

Exmar’s executive chairman Nicolas Saverys, said, “We are pleased to work with Eni to help increase their LNG supplies on a fast track basis. This represents a significant milestone for Exmar in its ambition and proof of our ability to further develop LNG infrastructure solutions.”