Final Decision for Coral Norte Gas Project signed

Maputo, 3 Oct (AIM) – The Italian energy company ENI and its partners on Thursday signed the Final Investment Decision (FID) for the implementation of the Coral Norte Liquefied Natural Gas (LNG) project, located in Area Four of the Rovuma Basin, off the coast of the northern province of Cabo Delgado.

The project, which is budgeted at over 7.2 billion US dollars, is expected to produce approximately 3.5 million tons of LNG per year and 4,300 barrels of condensate per day for approximately 30 years.

The terms of the FID were signed by Marica Calabrese, CEO of Eni Rovuma Basin; Ludovina Bernardo, Chairperson of the Board of Mozambique’s own National Hydrocarbons Company; the President and General Manager of China National Oil and Gas Exploration and Development Corporation (CNODC) He Wenyuan; the Senior Director of Korea Gas Corporation (KOGAS) Mozambique, Ju Moon Sung; and the Director of International Asset Management at XRG, Bassem Tadros.

The event was witnessed by Mozambican President, Daniel Chapo, and the CEO of Eni, Claudio Descalzi.

Speaking during the event, Chapo said that the project will make Mozambique the 14th largest exporter of natural gas in the world and the fourth largest in Africa.

“The gas will be essential to boost strategic sectors, particularly the development of LNG terminals in the cities of Beira and Matola, and in Inhassoro district, in Inhambane province, which are an alternative for supplying gas to the country’s existing and future gas-based power plants”, he said.

According to Chapo, over the project’s lifetime, the country will collect approximately 23 billion US dollars in tax revenue. The gains from LNG, he said, “will strengthen our ability to finance sectors such as agriculture, infrastructure, industry, tourism, education, health, and social programmes for the Mozambican people.”

He revealed that the government has secured up to 25 per cent of the gas for the domestic market, in a phased manner.

“We have also secured 100 per cent of the condensate allocation to our National Hydrocarbons Company (ENH), and the involvement of our publicly-owned companies: the Ports and Rail Company CFM and EMODRAGA [Mozambican Dredging Company] in the provision of maritime services and naval logistics, creating a solid foundation for greater involvement of national companies in providing services to the oil industry”, he said.

Coral Norte is expected to create more than 1,400 direct and indirect jobs for Mozambicans. It could generate more than three billion dollars’ worth of contracts with small and medium Mozambican enterprises during the phase of its installation.

This floating platform, said Chapo, is not just a work of sophisticated engineering, but is also “a work of hope for Mozambicans, which is arriving at a moment when the country is facing important macro-economic and social challenges”.

The President expected Coral Norte to become “a pillar of social and economic stability, a catalyst for industrialisation and an instrument for inclusive prosperity”.

Chapo noted that LNG is less polluting than other fossil fuels. He argued that it is “a transitional fuel” as the world moves away from petroleum.

Mozambique is well positioned, he added, due to its favourable geographic location, its world class reserves of gas, and their low sulphur content.

“But the success of this undertaking also depends on our ability to manage it with responsibility, competence, transparency and, above all, good governance”, Chapo stressed.

For his turn, the Eni CEO said that the Coral Norte project leverages Eni’s unparalleled research expertise and “our rapid development capabilities, Mozambique’s vast gas resources, and its strategic position.”

“With Coral Norte, we will contribute to meeting the growing global demand for LNG, doubling both Mozambique’s contribution to global energy security and the benefits to the country and its citizens in terms of economic and industrial growth”, he said.

ENI is already operating the Coral Sul liquefied natural gas (LNG) floating platform. The platform is anchored 50 kilometres from the coast of Palma district in Cabo Delgado. It is about 200 kilometres north of the Cabo Delgado provincial capital, Pemba. The project was formally inaugurated on 23 November 2022 by the then President Filipe Nyusi.

Coral Sul was the first ever floating LNG platform in African deep waters. Coral Norte uses the same technology and is basically a replica of Coral Sul.
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