Mozambique is poised to reap a staggering US$23 billion (€20.1 billion) in revenue over the next three decades from its ambitious Coral Norte liquefied natural gas (LNG) project, the second floating platform spearheaded by Italian energy giant Eni in the resource-rich Rovuma basin.
Government spokesman Inocêncio Impissa announced the lucrative forecast this Friday, detailing that this substantial sum would accrue through a combination of taxes and other contributions over the 25-year operational lifespan of the project, which includes a five-year construction and assembly phase.
Beyond the significant financial injection, the project, greenlit by the Mozambican government this week, also mandates that a substantial 25% of the total gas produced will be allocated to the domestic market, in line with national legislation. Furthermore, 100% of the condensate, a light hydrocarbon liquid, will be dedicated to energy generation within Mozambique, paving the way for the “development of industrialisation projects,” according to Impissa.
The Coral Norte venture is also expected to generate approximately 1,400 jobs for Mozambicans, with a strong emphasis on skills development and a succession plan designed to increase the presence of qualified local labour within the burgeoning oil and gas sector.
The government’s approval on Tuesday cleared the path for a €6.6 billion investment in the Coral Norte LNG project, which boasts a projected annual production capacity of 3.5 million tonnes of LNG, with operations slated to commence in the second quarter of 2028.
“The plan constitutes the second phase of development of the Coral Norte field, FLNG, and consists of a floating natural gas liquefaction infrastructure with a capacity of 3.55 million tonnes per year and six production wells, valued at around US$7.2 billion with production expected to start in the second quarter of 2028,” Impissa elaborated.
Eni’s CEO, Cláudio Descalzi, had earlier this year assured Mozambican President Daniel Chapo of the company’s commitment to expanding its LNG operations in the Rovuma basin, envisioning Mozambique’s ascent onto the global stage as a significant natural gas producer.
Sources within Eni, the concessionaire of Area 4 in the Rovuma basin, confirmed last year that discussions were underway with the government regarding the development of a second floating platform, effectively a replica of the operational Coral Sul facility, to further amplify gas extraction.
“Eni has finalized the Development Plan, which is currently under discussion with partners and the Government of Mozambique for final approval. At the same time, Eni is moving forward with acquisition processes, environmental impact studies, etc., including contracts associated with drilling,” an Eni official stated previously.
This strategic blueprint hinges on the acquisition of a second floating LNG platform for the Coral Norte area, mirroring the Coral Sul platform which has been actively extracting gas since mid-2022.
A 2024 study by Deloitte highlighted the immense potential of Mozambique’s LNG reserves, which are currently being explored and developed by multinational energy giants including TotalEnergies, ExxonMobil, and Eni. The consultancy firm concluded that these reserves could generate a staggering US$100 billion (€96.2 billion) in potential revenues, underscoring Mozambique’s growing international significance in the global energy transition.
“The country’s vast gas reserves could make Mozambique one of the world’s ten largest producers, responsible for 20% of Africa’s production by 2040,” the Deloitte report projected.
The approval of the Coral Norte project marks another significant step in Mozambique’s journey to becoming a major player in the global LNG market, promising substantial economic benefits and industrial development for the nation.
