Home Southern Africa Mozambique Strengthens LNG Leadership with USD 7.2 Billion Coral North Investment

Southern Africa

Mozambique Strengthens LNG Leadership with USD 7.2 Billion Coral North Investment

April 11, 2025

Coral North complements the existing Coral South Floating LNG (FLNG) facility—the first of its kind in deepwater Africa. Operated by Eni on behalf of the Mozambique Rovuma Venture (a joint venture including Eni, ExxonMobil, and China National Petroleum Corporation), the new project is set to add 3.5 million tonnes per annum (mtpa) of LNG, effectively doubling the output of Coral South.

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Mozambique is making a significant move to reinforce its position as a leading global exporter of liquefied natural gas (LNG) with the Final Investment Decision (FID) for the Coral North offshore project, valued at $7.2 billion. Spearheaded by Eni through the Area 4 consortium, this development marks a major step in unlocking further potential from the gas-rich Rovuma Basin.

Coral North complements the existing Coral South Floating LNG (FLNG) facility—the first of its kind in deepwater Africa. Operated by Eni on behalf of the Mozambique Rovuma Venture (a joint venture including Eni, ExxonMobil, and China National Petroleum Corporation), the new project is set to add 3.5 million tonnes per annum (mtpa) of LNG, effectively doubling the output of Coral South.

This expansion is strategically important for Mozambique, home to an estimated 100 trillion cubic feet of offshore gas. Coral North is expected to begin production in 2027, boosting export earnings and creating local jobs.

Unlike onshore projects delayed by security concerns, Coral North’s offshore location shields it from the militant unrest in Cabo Delgado, allowing Eni to maintain steady progress and instill investor confidence.

The FID reflects Mozambique’s growing appeal as a secure and promising destination for long-term energy investments. Recent government reforms, including streamlined regulations and strengthened local content policies, have further improved the investment climate.

Technologically, the project will deploy a second FLNG vessel—constructed by Samsung Heavy Industries and equipped by Technip Energies—leveraging insights from Coral South and minimizing onshore environmental impacts.

Geopolitically, Coral North’s output positions Mozambique as a vital supplier for both Europe and Asia, especially as nations seek alternatives to Russian gas. Italy, in particular, stands to benefit from the expanded supply via Eni’s infrastructure.

Aligned with Mozambique’s National Development Strategy, gas revenues are intended to fund critical sectors like health, education, and infrastructure. Still, experts caution that strong governance and transparency will be key to avoiding pitfalls common in resource-dependent economies.

Environmental advocates have urged for more comprehensive impact assessments, though Eni has committed to high environmental standards and contributions to Mozambique’s decarbonisation goals, framing LNG as a transitional energy source. In the evolving global energy landscape, Coral North represents a pivotal intersection of economic opportunity, energy security, and sustainable development. Set for operational launch in 2027, the project could become a cornerstone of Southern Africa’s energy diplomacy and a catalyst for inclusive national growth.