The Final Investment Decision (FID) for the Coral North FLNG project is expected to be announced at a ceremony in Maputo, attended by officials and the management of Italian oil company Eni.
Eni will operate the Coral North FLNG project, as it does with Coral Sul, on behalf of the Rovuma Mozambique Venture (MRV), a consortium with a 70% stake that includes ExxonMobil and China National Petroleum Corporation (CNPC).
Mozambique anticipates earning $23 billion (20.1 billion euros) over 30 years from the Coral North project, the second FLNG platform by Eni for liquefied natural gas (LNG) production in the Rovuma Basin, Cabo Delgado.
“According to the approved development plan, over the next 25 years – including 30 years with construction and assembly of this system, which will be implemented over 25 years – the government will collect $23 billion in revenues, taxes, and other contributions,” stated government spokesperson Inocêncio Impissa in April.
The spokesperson further mentioned that the project, approved days earlier by the Council of Ministers, “also plans to supply 25% of the total gas produced to the domestic market, in accordance with national legislation, and 100% of the condensate for power generation,” facilitating the “industrialization projects in Mozambique.”
The project is expected to create 1,400 jobs for Mozambicans, with a plan in place to enhance the skills and availability of Mozambican labor in the oil and gas sector, the spokesperson added.
On April 8, the Mozambican government approved Eni’s investment in the Coral North LNG project, which aims to produce 3.5 million tonnes annually (mtpa) and begin operations in 2028.
“The plan represents the second phase of the Coral North field development, FLNG, and involves a floating natural gas liquefaction infrastructure with a capacity of 3.55 million tonnes per year and six production wells, valued at approximately $7.2 billion, with production scheduled to commence in the second quarter of 2028,” announced Inocêncio Impissa at the time.
The Council of Ministers spokesperson released these details following a meeting where the decree approving the Coral North project development plan was discussed and adopted, facilitating the development and production of 3.5 mtpa of LNG over 30 years in Area 4, off the coast of the Rovuma Basin, operated by Italian company Eni.
On January 16, Eni’s CEO, Claudio Descalzi, assured Mozambican President Daniel Chapo of plans to expand LNG operations in the Rovuma Basin, elevating Mozambique’s status in the global natural gas sector.
In October 2023, an Eni source disclosed discussions with the Mozambican government about developing a second floating platform, identical to Coral Sul and named Coral Norte, to boost gas extraction.
“Eni has finalized the Development Plan, which is currently under discussion with partners and the Mozambican government for final approval. Meanwhile, Eni is proceeding with procurement, environmental impact studies, and contracts related to drilling,” stated an official source from Eni.
The plan involves acquiring a second floating FNLG platform for the Coral Norte area, similar to the one operating gas extraction since mid-2022 in the Coral Sul area.
A 2024 study by consultancy firm Deloitte concluded that Mozambique’s LNG reserves, with ongoing or planned projects by multinationals like TotalEnergies, ExxonMobil, and Eni, represent potential revenues of $100 billion (96.2 billion euros).
