KEY POINTS
- Eni and partners including CNPC, Kogas, ENH, and ADNOC’s XRG approved the Coral North FLNG project in Mozambique’s Rovuma Basin.
- The project will add 3.6 million tons of annual LNG capacity, boosting Mozambique’s production above 7 million tons by 2028.
- Mozambique is set to become Africa’s third-largest LNG producer, with major economic benefits expected from jobs, industry participation, and export revenues.
Eni SpA and its consortium partners have approved the long-awaited Coral North floating liquefied natural gas (FLNG) development offshore Mozambique, a move expected to transform the country’s role in the global LNG market.
The final investment decision (FID), announced in Maputo on Thursday in the presence of Mozambique’s President Daniel Francisco Chapo, will see the construction of a state-of-the-art floating LNG facility in the Rovuma Basin. The project, backed by Eni (50%), China’s CNPC (20%), Korea Gas Corp. (10%), Mozambique’s state oil company ENH (10%) and ADNOC’s XRG (10%), is slated to begin operations by 2028.
Eni Chief Executive Officer Claudio Descalzi said the venture underscores the Italian major’s ability to fast-track deepwater projects and leverage its exploration track record. “With Coral North we will double Mozambique’s contribution to global energy security while delivering strong economic benefits for the country and its citizens,” Descalzi said.
Mozambique Set to Become LNG Powerhouse
Coral North marks Eni’s second FLNG project in Mozambique following Coral South, which began production in 2022 and was the first ultra-deepwater FLNG facility worldwide. Together, the two projects will lift Mozambique’s total LNG output to more than 7 million metric tons per year, positioning the country as Africa’s third-largest exporter after Nigeria and Algeria.
With a liquefaction capacity of 3.6 million tons annually, Coral North will quadruple Mozambique’s existing gas production. Authorities expect the development to generate jobs, expand local industry participation, and accelerate investments in education, health and infrastructure.
The Coral field is part of the vast Rovuma Basin discoveries made between 2011 and 2014, where reserves are estimated at about 2.4 trillion cubic meters of natural gas. Beyond export revenues, officials hope the new project will help diversify Mozambique’s economy and deepen its role in meeting growing Asian and European demand for LNG.
“Coral North builds on the experience of Coral South, ensuring efficiencies in cost, schedule, and performance,” Eni said, adding that the project is designed to mitigate execution risks while meeting its 2028 delivery timeline.
