Mozambique has greenlighted the development of Coral North Floating Liquefied Natural Gas (FLNG) project through officially reaching the Final Investment Decision (FID).
The signing ceremony which took place in Maputo, attended by senior government officials and executives from the participating companies marks marking a major step forward in the nation’s energy development ambitions.
The Coral North FLNG Project, situated in the Rovuma Basin’s Area 4, off the coast of Cabo Delgado Province, FLNG will be located in ultra-deep waters and is expected to begin operations by 2028. The floating facility will have a liquefaction capacity of approximately 3.55 million tons per year, using advanced offshore LNG technology to process gas from the northern section of the Coral field.
READ: Egypt, Norway ink deal for Dandara Solar Project
Sustainable social and economic growth
The project will be jointly developed by Eni Group of Italy, China National Petroleum Corporation (CNPC), Mozambique’s national oil company ENH, Korea Gas Corporation (KOGAS), and XRG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC).
Together with the existing Coral South FLNG project, Mozambique’s total LNG production capacity will increase to nearly 7 million tons per year, positioning the country as Africa’s third-largest exporter of liquefied natural gas.
According to Eni Chief Executive Officer Claudio Descalzi, Coral North will be the world’s second large-scale ultra-deepwater FLNG development, following Coral South, which began production in 2022. He emphasized that the project demonstrates Mozambique’s growing importance in the global LNG industry and contributes to global energy diversification.
Mozambican President Daniel Chapo stated that the project represents an investment of more than US $7.2bn and is expected to deliver about US $23bn in government revenue over the next 30 years. He described Coral North as “not only an engineering achievement but also a source of hope for the Mozambican people.”
He Wenyuan, General Manager of CNPC International Exploration and Development, highlighted that the project will enhance Mozambique’s gas sector competitiveness, generate new employment opportunities, and stimulate sustainable social and economic growth. He reaffirmed CNPC’s commitment to ensuring efficient project delivery and contributing to global energy security.
Under the project’s joint venture structure, Eni holds a 50% stake, CNPC 20%, KOGAS 10%, ENH 10%, and XRG 10%. Since its launch in late 2022, the Coral South FLNG has exported over 123 cargoes of LNG and 17 cargoes of condensate, while supporting about 1,400 direct and indirect jobs and awarding $800 million in contracts to local small and medium-sized enterprises.
Eni has operated in Mozambique since 2006 and discovered substantial gas reserves between 2011 and 2014, estimated at around 2.4 trillion cubic meters across the Coral, Mamba, and Agulha reservoirs in the Rovuma Basin. The development of Coral North is expected to double Mozambique’s LNG output and further consolidate the country’s standing as a key player in Africa’s natural gas sector.
