Communication - Presse

AfDB Approves $150M Financing For Coral North FLNG Project

In a press release, the institution stated that “the Coral North FLNG project follows the Coral South FLNG, which became operational in 2022, and involves the development, construction, and operation of a floating liquefied natural gas unit with an annual capacity of 3.55 million metric tons.” The infrastructure will be installed approximately 55 kilometers off the coast of Cabo Delgado province in the northern part of the country.

Led by the Italian multinational Eni, the project represents an investment exceeding $7 billion. In addition to financing from the African Development Bank Group, Coral North will be supported by resources from other development finance institutions, export credit agencies, and commercial banks.

According to estimates, the project is expected to generate over $20 billion in tax revenues over its lifecycle, significantly contributing to the growth of Mozambique’s economy. The initiative is also expected to create temporary jobs during the construction phase and permanent positions during the operational phase.

The Coral North FLNG project also plans to allocate part of its natural gas production for strategic purposes, including access to clean cooking fuels, domestic industrial development, gas exports to Southern African Development Community (SADC) countries, and the implementation of gas-fired power generation projects, strengthening regional energy security. “The project is expected to increase Africa’s share in the global liquefied natural gas market, while consolidating Mozambique’s position as a key player in the energy sector in the SADC region,” the document reads.

Considered a milestone in Africa’s energy transition, the Coral North FLNG reinforces Mozambique’s positioning as a global LNG supplier, ensuring significant socio-economic benefits such as job creation, increased public revenues, and enhanced energy security. AfDB’s support further underscores its commitment to climate-resilient infrastructure and sustainable industrialization on the African continent.

https://360mozambique.com/oil-gas/afdb-approves-150m-financing-for-coral-north-flng-project/