“This project is proof that Mozambique has the potential to host projects of this nature. We believe that many other similar projects can be carried out in our country,” stated Mozambique’s Minister of Mineral Resources and Energy, Estêvão Pale, following a visit on Friday to the floating liquefied natural gas (LNG) processing, storage, and unloading unit located over 60 kilometers off the coast of Cabo Delgado.
Area 4 in northern Mozambique is managed by the Mozambique Rovuma Venture (MRV) – a consortium consisting of Eni, ExxonMobil, and China National Petroleum Corporation (CNPC) – which holds a 70% stake in the Concession Contract for Exploration and Production of Area 4.
The Coral Sul FLNG is the first floating installation of its kind on the African continent, with a gas liquefaction capacity of 3.55 million tons per year (mtpa). It plans to produce 450 billion cubic meters of gas from the Rovuma Basin reservoir, located in ultra-deep waters.
Since production started in November 2022, 104 shipments have been completed, with the project involving an investment of around 7 billion dollars (6.2 billion euros).
In total, the country has collected 206 million dollars, of which 65 million dollars (57 million euros) pertains to oil production taxes, 134 million dollars (119 million euros) to “profit oil,” and 7 million dollars (6.2 million euros) in production bonuses.
“We expect future gains for the country to be in the region of 1.3 billion dollars [1.1 billion euros] per year. This is significant for our balance of payments,” added Estevão Pale.
Since the beginning of exploitation, according to official data, in addition to about 19 million dollars (16.9 million euros) disbursed in social responsibility projects, around 819 million dollars (728 million euros) have been spent on contracts with Mozambican companies, with 1,337 Mozambican workers employed on the platform, most of whom are young people.
“I see that all the young people working here are very motivated and learning… The project is a success,” concluded the Minister of Mineral Resources and Energy.
On January 16, Eni’s CEO, Claudio Descalzi, assured the Mozambican President, Daniel Chapo, of plans to expand operations in the Rovuma Basin LNG project, thereby placing Mozambique on the global natural gas landscape.
In a congratulatory letter on Daniel Chapo’s election as President of the Republic, sworn into office days earlier, the leader of the Italian oil company pledged Eni’s commitment to further enhance collaboration.
The Mozambican government approved, in April, an investment of 6.6 billion euros for the Coral Norte LNG project, the second platform of its kind for the area, with expected production of 3.5 million mtpa and startup in 2028.
“This consists of a floating liquefied natural gas infrastructure with a capacity of 3.55 million tons per year and six production wells, valued at about 7.2 billion US dollars [6.6 billion euros], with production scheduled to begin in the second quarter of 2028,” announced Inocêncio Impissa, the spokesperson for the Council of Ministers, at the time.
In 2024, a Deloitte study concluded that Mozambique’s LNG reserves represent potential revenues of 100 billion dollars (96.2 billion euros), highlighting the country’s international importance in the energy transition.
Mozambique has three approved development projects to exploit the natural gas reserves of the Rovuma Basin, classified among the largest in the world, off the coast of Cabo Delgado.
