The Coral South project consists of the construction of a floating liquefied natural gas (FLNG) unit with an annual capacity of more than 3.4 million tons per year (mtpa) of (LNG), which will be connected to six wells.
The FLNG will be allocated to the southern part of the Coral discovery, which is located exclusively in Area 4, containing about 16 Tcf of GIIP.
At the end of 2016, Galp's Board of Directors approved the investment in the Coral South area, with a Final Investment Decision (FID) having been taken by the consortium during 2017. The consortium awarded the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) contract for the FLNG unit to the TJS consortium (Technip, JGC, Samsung). Additionally, the consortium awarded the upstream contracts for the drilling rig, umbilicals and subsea production systems for the development of the area.
Total development capex for upstream and midstream is estimated at c.$7 billion (bn) and first gas is expected during 2022. The Area 4 consortium also signed a c.$5 bn project financing package with a syndicate of leading ECAs and international financial institutions.
In October 2016, the consortium signed an agreement with BP for the offtake of the volumes produced through the Coral South FLNG, for a period of 20 years.