According to a statement released by the Mozambican government on Tuesday, the Coral Norte project is slated to extract and process approximately 3.55 million metric tons per annum (MTPA) of liquefied natural gas over a projected lifespan of 30 years. The gas reserves will be sourced from the vast offshore Rovuma Basin, a region that holds some of the largest untapped natural gas discoveries in the world.
This development marks a crucial step in Mozambique's strategy to capitalize on its substantial offshore gas wealth. The Coral Norte platform will be Eni's second FLNG facility operating in Mozambican waters.
Their first, the Coral South FLNG plant, commenced exports to Europe in 2022, demonstrating the country's capacity to contribute to global energy supply chains. The success of Coral South has provided valuable experience and confidence for the development of subsequent projects like Coral Norte.
The $7.2 billion investment in Coral Norte underscores the significant capital being injected into Mozambique's energy sector. This investment is expected to have a considerable positive impact on the nation's economy, creating jobs, fostering local industry development, and generating substantial revenue through gas exports. The project is currently anticipated to commence production in the latter half of 2028, adding a significant volume of LNG to the global market.
While Eni progresses with its offshore FLNG ventures, other major international energy companies, including ExxonMobil and TotalEnergies, are also involved in developing onshore LNG projects in Mozambique.
However, these onshore developments have faced considerable delays due to persistent security concerns in the northern Cabo Delgado province. The offshore nature of Eni's FLNG projects offers a degree of insulation from these onshore security challenges, allowing for more consistent progress.
The approval of the Coral Norte development plan signifies a continued commitment from Mozambique to harness its natural gas resources. As global demand for cleaner energy sources continues to rise, Mozambique is strategically positioned to become a key LNG supplier, contributing to energy security in various parts of the world, particularly Europe, which is actively seeking to diversify its energy sources.
The successful development and operation of projects like Coral Norte will be crucial in realizing Mozambique's potential as a major energy exporter and driving long-term economic growth for the southern African nation.