Mozambique has taken another decisive step towards cementing its role as a global liquefied natural gas (LNG) player. Italian energy major Eni, alongside its partners, has approved the Final Investment Decision (FID) for the $7.2 billion Coral North Floating LNG (FLNG) project in the Rovuma Basin.
The project will add 3.6 million tons per annum (mtpa) of LNG capacity, doubling Mozambique’s offshore output when paired with Coral South. By 2028, the country’s LNG exports are expected to exceed 7 mtpa, placing it firmly among Africa’s leading gas producers.
A Strategic Offshore Bet
Coral North builds on the operational success of Coral South, which became Africa’s first deepwater FLNG project in 2022. Located offshore in Area 4 of the Rovuma Basin, Coral North benefits from distance to Cabo Delgado’s security flashpoints, a factor that has long disrupted onshore developments.
By investing in offshore floating facilities, Eni and its partners are effectively hedging against the insurgency that has stalled multi-billion-dollar ventures like TotalEnergies’ Mozambique LNG and ExxonMobil’s Rovuma LNG.
Economic Returns and Local Benefits
Mozambique stands to gain significantly from Coral North. Over the life of the project, Eni estimates USD 23 billion in fiscal revenues will flow into state coffers, supported by production sharing, taxes, and royalties.
The project also promises USD 3 billion in contracts for Mozambican companies and extensive local employment opportunities. By tying in local service providers, logistics firms, and skilled workers, Coral North could stimulate growth across the national economy.
Partners and Financing
The project is backed by a consortium including Eni (50%), CNPC (20%), Kogas (10%), ENH (10%), and ADNOC’s XRG (10%). This diversified partnership blends global capital with Mozambican participation, ensuring local ownership in one of the country’s most strategic resources.
Wider LNG Context
The FID on Coral North comes at a critical juncture. Global LNG demand is surging, with Europe seeking diversification from Russian gas and Asia driving long-term growth. Mozambique, with its vast reserves, is now positioned to become a reliable supplier to both regions.
At the same time, the government has confirmed that conditions for TotalEnergies to resume its $20 billion Mozambique LNG project are finally being met, while ExxonMobil continues discussions for its delayed Rovuma LNG venture. Together, these projects could transform Mozambique into a global LNG powerhouse within the next decade.
Challenges Ahead
Despite the optimism, challenges persist. Offshore projects may avoid direct security risks, but supply lines, financing stability, and regulatory clarity will be critical to delivering Coral North on time and within budget. Moreover, Mozambique must ensure that revenues are managed transparently and reinvested in development priorities.
The approval of Coral North signals renewed investor confidence in Mozambique’s LNG future. With billions in revenues projected and energy markets increasingly turning to Africa, Mozambique now has a rare opportunity to leverage its gas reserves into sustainable growth.
If managed prudently, Coral North could become more than an energy project: it could mark the turning point where Mozambique transforms natural wealth into broad-based development and international relevance.
