Mozambique has formally reached the Final Investment Decision (FID) for the Coral North Floating Liquefied Natural Gas (FLNG) project, marking a decisive step in the nation’s long-term energy development strategy. The signing ceremony took place in Maputo on Thursday, attended by representatives from the project’s consortium partners and government officials.
The Coral North project is jointly developed by Eni Group of Italy, China National Petroleum Corporation (CNPC), Empresa Nacional de Hidrocarbonetos (ENH), Korea Gas Corporation, and XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC). Situated in the ultra-deep waters of the Rovuma Basin’s Area 4 off the coast of Cabo Delgado Province, the project is projected to be operational by 2028.
The floating LNG facility will have an annual production capacity of approximately 3.55 million tonnes, complementing the already operational Coral South FLNG project. Together, these developments are expected to increase Mozambique’s LNG output to nearly seven million tonnes per year, positioning the country as Africa’s third-largest LNG producer, after Nigeria and Algeria.
According to Claudio Descalzi, Chief Executive Officer of Eni, Coral North represents the world’s second major ultra-deepwater FLNG project, following Coral South. He noted that the project reflects “the culmination of technological expertise and multinational collaboration that underscores Mozambique’s strategic role in global energy security.”
Mozambique’s President, Daniel Chapo, emphasised the broader socio-economic significance of the venture. He described Coral North as not only an engineering achievement but also “a source of hope for the Mozambican people.” The project is anticipated to attract an investment exceeding 7.2 billion US dollars, generating an estimated 23 billion dollars in fiscal revenue over the next three decades.
President Chapo further stated that the government is committed to ensuring that such projects contribute directly to local development, particularly through job creation, capacity building, and community participation. This aligns with Mozambique’s National Energy Strategy, which prioritises inclusive and sustainable resource management to ensure long-term social benefits.
He Wenyuan, General Manager of CNPC International Exploration and Development Co., highlighted that the Coral North project would strengthen Mozambique’s position within the global energy value chain. He noted that CNPC’s engagement in the project reflects “a continued commitment to high-quality energy development that fosters local growth and enhances global energy stability.”
The first FLNG facility, Coral South, began operations in late 2022 and has since exported over 123 LNG cargoes and 17 condensate shipments. The project has also created approximately 1,400 direct and indirect jobs within Mozambique and channelled more than 800 million dollars in contracts to local small and medium-sized enterprises (SMEs).
The Coral North initiative builds on that momentum, reinforcing Mozambique’s reputation as a reliable LNG exporter and a critical player in Africa’s emerging role in the global energy transition. Unlike narratives that frame African energy development solely through extractive or dependency lenses, Coral North represents a model where regional agency and collaboration are central.
The project’s multi-national composition — involving European, Asian, and African stakeholders — illustrates the potential for equitable partnerships that balance economic opportunity with environmental and social accountability. It also signals a shift in how African nations like Mozambique can leverage natural resources to shape their own energy futures, guided by principles of sovereignty, sustainability, and shared prosperity.
In an increasingly dynamic global energy landscape, Mozambique’s progress in LNG production reflects both its resource potential and its capacity for strategic negotiation. The Coral North FLNG project thus stands not only as a symbol of industrial achievement but also as a testament to the continent’s evolving energy narrative — one rooted in African agency, regional cooperation, and inclusive growth.
