Maputo, 16 Sep (AIM) – Mozambican government has approved the Financing Structure for the Coral Norte Liquefied Natural Gas (LNG) Project, located in Area 4 of the Rovuma Basin, off the coast of the northern province of Cabo Delgado.
The project in question is operated by Mozambique Rovuma Venture (MRV), a joint venture owned by the American ExxonMobil, the Italian energy company ENI, and CNPC of China. It is also part of the venture Mozambique’s own National Hydrocarbon Company (ENH), Kogas of South Korea and XRG.
The project involves the construction of a new FLNG facility with a production capacity of approximately 3.6 million tonnes per annum. The facility will be installed in the Coral gas field, located about 50 kilometers offshore northern Mozambique.
The Coral Norte Project represents the second FLNG development in Mozambique, following the Coral Sul Project. In that earlier project, JGC Group, Technip Group and Samsung Heavy Industries jointly executed the EPCIC works, achieving first LNG cargo in 2022 and currently producing with outstanding operating performances.
According to Salim Valá, government spokesperson and minister of Planning and Development, speaking to reporters on Tuesday, after a meeting of the Council of Ministers (cabinet), the approved Financing Structure is aimed at incorporating the publicly-owned Hydrocarbon Company (ENH) in the Coral Norte FLNG Project.
“This approval will enable ENH, as the State’s representative in the project, to participate through its subsidiary ENH Rovuma Área 4, a limited company, thereby isolating the risk associated with the direct participation of its parent company in projects with a complex financing structure.
The minister also explained that the segregation of these investments or projects into separate legal entities is more efficient and viable to limit each business’s exposure to the assets of the others, in line with international best practices.
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