Mozambique is set to develop a Coral North Floating Liquefied Natural Gas (FLNG) Project. This follows an approval of US $150M made by African Development Bank (AfDB) for the project marking a significant milestone in the country’s energy and economic development agenda.
Coral North builds on the success of the Coral South FLNG facility, which began production in 2022. The new project will involve the construction and operation of a floating LNG unit with an annual production capacity of 3.55 million metric tonnes, located approximately 55Km offshore in Cabo Delgado province in northern Mozambique.
READ: Kenya launches initial public offering (IPO)
Coral North Floating Liquefied Natural Gas Project
The project is led by Eni S.p.A., a global energy major with extensive experience in LNG developments. Total project costs are estimated at over US $7bn, with financing provided by a consortium of development finance institutions, export credit agencies, and commercial lenders alongside the AfDB Group.
Over its operational lifespan, Coral North is expected to generate more than US $20bn in fiscal revenues for Mozambique, delivering a substantial boost to public finances. The project will also create significant employment opportunities, including thousands of jobs during the construction phase and long-term positions during operations.
A key feature of Coral North is its strong focus on domestic and regional development. Part of the LNG output will be allocated to support clean cooking initiatives, domestic industrial growth, gas-to-power projects, and gas exports to countries within the Southern African Development Community (SADC). These measures are expected to strengthen regional energy security, improve access to reliable power, and enhance economic resilience.
By expanding Mozambique’s LNG capacity, the project will reinforce Africa’s role in meeting rising global demand for liquefied natural gas while further positioning Mozambique as a leading energy hub in the SADC region. The development supports economic diversification and deeper regional integration.
Overall, the Coral North FLNG Project represents a landmark investment in Africa’s evolving energy transition. Building on earlier LNG developments in Mozambique, it supports sustainable industrialization, climate-resilient infrastructure, and long-term energy security, while delivering wide-ranging socio-economic benefits through job creation and increased public revenues.
