The Coral Norte FLNG project in Mozambique has secured a $7.2 billion financing framework, advancing construction of a major offshore gas development. The government says the arrangement will protect public finances from debt obligations and fiscal liabilities. The development will take place in Area 4 of the Rovuma Basin, offshore Cabo Delgado Province. Italian energy company Eni leads the development alongside Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos (ENH) and international partners.
The Council of Ministers approved the financing structure on November 4, 2026. The arrangement establishes how developers will mobilize capital for engineering, construction, installation and deployment. It allows lenders to provide up to 70% of the investment through debt financing. Meanwhile, project partners must contribute at least 30% through equity. The financing ceiling stands at $7.2 billion.
The government also approved the establishment of ENH Coral Norte, SU, S.A. This subsidiary will manage ENH’s financial participation separately. Consequently, the structure aims to improve financial transparency and isolate project-related obligations.
The decree also protects Mozambique’s sovereignty over its natural resources. Furthermore, lenders cannot exercise guarantees that undermine government regulatory powers or resource ownership. The government maintains that financing arrangements will not create public debt or additional fiscal obligations.
Coral Norte FLNG Project advances with dedicated financing structure
The financing approval builds on the Final Investment Decision (FID) signed on October 2, 2025. President Daniel Chapo attended the signing ceremony in Maputo alongside Eni Chief Executive Claudio Descalzi. The partners committed approximately $7.2 billion to develop the offshore facility.
The project will extract gas from the northern section of the Coral reservoir. It will then process the resource aboard a purpose-built floating liquefied natural gas vessel. The facility will deliver approximately 3.55 million tonnes of LNG annually. Its planned operational lifespan extends to 30 years.
Importantly, construction preparations have progressed beyond the financial approval stage. The National Petroleum Institute reported that the Saipem 12000 drillship arrived in Cabo Delgado in October 2026. The vessel will support production-well drilling and completion.
The drilling campaign will cover approximately 270 days and target up to six development wells. Meanwhile, the floating liquefaction infrastructure under construction in South Korea had reached 72% completion. These activities establish important milestones towards offshore production.
The government expects production to begin in 2028. However, the International Monetary Fund’s 2026 assessment uses a more conservative 2030 production projection. The difference highlights the importance of monitoring construction progress and commissioning schedules.
The project forms part of Mozambique’s wider ambition to expand its natural gas export capacity. Meanwhile, the country’s separate Mozambique LNG development secured substantial international financing. The US Export-Import Bank approved $4.7 billion in financing for TotalEnergies’ $20 billion onshore LNG development. The funding supports a separate project in Cabo Delgado, complementing Mozambique’s wider gas infrastructure expansion.
Coral Norte FLNG Project targets higher national gas production
The development will significantly expand Mozambique’s LNG export capacity. Its 3.55 million tonnes annual output will complement the operational Coral Sul floating facility. Coral Sul began commercial production in 2022.
Together, the two developments will provide more than seven million tonnes of annual LNG capacity. Consequently, Mozambique expects to strengthen its position among Africa’s leading natural gas exporters. Eni projects that Coral Norte will help position the country as Africa’s third-largest LNG producer.
Furthermore, the development includes commitments to supply domestic energy markets. Agreements provide for natural gas equivalent to 25% of total project production. The project will also supply all its condensate for domestic power generation and industrial development. These provisions could support downstream industries and improve domestic energy availability.
Nevertheless, the financing announcement comes against Mozambique’s wider public debt challenges. The IMF has identified substantial exposure arising from ENH’s existing borrowing for other LNG developments. Its assessment projected ENH debt could rise from $4.6 billion in 2024 to $20 billion by 2045. However, Coral Norte had no recorded project debt in that assessment. The newly approved financing structure therefore seeks to separate its obligations from direct state liabilities.
The National Petroleum Institute will oversee regulatory compliance throughout project execution. Its responsibilities include technical, environmental and legal supervision. Meanwhile, the financing framework and offshore construction program will determine whether developers achieve the targeted production schedule.
Project Fact Sheet
Name: Coral Norte Floating Liquefied Natural Gas (FLNG) Project.
Location: Offshore Area 4, Rovuma Basin, Cabo Delgado Province, northern Mozambique.
Value: $7.2 billion.
Scope: Development of offshore natural gas resources, production wells, floating LNG infrastructure, installation and commissioning.
Gas reservoir: Northern section of the Coral Eocene 441 reservoir.
Production capacity: 3.55 million tonnes of LNG annually.
Operational lifespan: 30 years.
Financing structure: Up to 70% debt financing and at least 30% equity.
Final Investment Decision: October 2, 2025.
Construction and drilling: Floating LNG facility construction in South Korea and offshore development drilling in Mozambique.
Production target: 2028.
Domestic supply commitment: 25% of total natural gas production, alongside 100% of condensate production.
Regulatory authority: Mozambique National Petroleum Institute (INP).
Project Team
Developer and Operator: Eni, holding a 50% participating interest in the Coral Norte development.
Joint Venture Partners:
- China National Petroleum Corporation (CNPC), holding a 20% participating interest.
- Korea Gas Corporation (KOGAS), holding a 10% participating interest.
- Empresa Nacional de Hidrocarbonetos (ENH), holding a 10% participating interest.
- XRG, ADNOC’s international investment subsidiary, holding a 10% participating interest.
National Project Investment Vehicle: ENH Rovuma Área 4, S.A., responsible for holding and managing ENH’s participation through dedicated project entities.
Offshore Drilling Contractor: ENH-Saipem Drilling Company, S.A., participating in the development-well drilling campaign.
Drilling Vessel Provider: Saipem, deploying the Saipem 12000 drillship.
Regulatory Authority: National Petroleum Institute (INP), responsible for technical, environmental and regulatory oversight.
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