The African Development Bank has approved a $150m senior loan to support the development of Eni’s Coral North FLNG project offshore Mozambique.
Building on the success of Coral South FLNG, which became operational in 2022, the Coral North project will develop, construct, and operate an FLNG facility with an annual capacity of 3.6 mtpa, some 55 km off the coast of the Cabo Delgado province. It will double Mozambique’s total LNG output to 7 mtpa.
The Eni-led project is expected to cost more than $7bn. In addition to the African Development Bank Group, financing will be provided by other development finance institutions, export credit agencies, and commercial lenders. Coral North is estimated to generate more than $20bn in fiscal revenues over its lifetime.
The project commits to set aside a portion of LNG production for clean cooking access, domestic industrial development, gas exports to the Southern African Development Community (SADC) region, and the development of gas-to-power projects, thereby enhancing the region’s energy security and resilience.
Coral North is designed to deliver enhanced efficiency and optimised performance, reducing costs and minimising execution risks with the goal of completing the project on schedule by 2028.
Earlier this month, a ceremony was held to launch the hull of the Coral North FLNG in South Korea, fully in line with the project schedule.