Italian energy giant Eni has given final financial approval for the $7.2 billion Coral Norte liquefied natural gas (LNG) project in Mozambique, setting the stage for the country’s second major gas project.
The final investment decision was announced on Thursday, during a signing ceremony in Maputo attended by Eni CEO Claudio Descalzi and Mozambican President Daniel Chapo.
The decision follows months of negotiations and was confirmed during the African Energy Week in Cape Town, where Mozambique’s Energy Chamber President Florical Mucave hailed the deal as “transformational” for the region.
Energy in Africa had earlier reported on the possibility of Eni making the decision today, based on local sources familiar with the matter.
Coral Norte will be Mozambique’s second floating LNG platform, following the successful launch of Coral Sul in 2022.
The new facility will produce 3.55 million metric tons of LNG annually, tapping into the same vast offshore reservoir in the Rovuma Basin, which holds an estimated 500 billion cubic meters of natural gas.
The project involves six subsea wells connected to a floating LNG unit and is expected to begin production in 2028, with a lifespan of at least 30 years.
It is being developed by Eni in partnership with ExxonMobil, CNPC, Galp Energia, Kogas, and Mozambique’s national oil company ENH.
Backstory
Mozambique approved the Coral Norte development plan in April, clearing the way for Eni’s financial commitment.
The project has already launched tenders for engineering and construction work, led by a consortium including Samsung Heavy Industries, JGC, and Technip Energies.
Coral Norte’s offshore location offers relative security and operational continuity, unlike onshore LNG ventures in northern Mozambique, which have faced delays due to militant activity.
Earlier, French energy major TotalEnergies called off the restart of its $20 billion LNG project until 2029, citing ongoing security challenges in Cabo Delgado province.
CEO Patrick Pouyanné stressed such a project requires “strong alignment between the Mozambican government and investors,” and firm guarantees of safety for staff and infrastructure.
However, the Eni-operated Coral Norte project still faces challenges in securing international financing and navigating environmental scrutiny.
Like TotalEnergies, ExxonMobil has yet to move ahead with its proposed $30 billion LNG terminal in the country’s northern province of Cabo Delgado.
In a recent meeting with President Chapo, ExxonMobil’s CEO Darren Woods discussed safety concerns and sought security assurances from the government. Still, it is not immediately clear when the project will kick off.
