Maputo, 17 Sep (AIM) – The Italian Energy Company ENI, which exports liquefied natural gas (LNG) from the Coral Sul project, in the northern Mozambican province of Cabo Delgado, plans to channel up to three US billion dollars to local companies as part of the local content requirements.
ENI is already operating the Coral Sul 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.
ENI and its partners are waiting for 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 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.
According to Fabrizio Russo, Eni Director of Procurement in Mozambique, interviewed by AIM,
Eni has earmarked up to three US billion dollars specifically for local content. “This is the plan, and it is fully secured. This amount has been allocated for companies within the project’s implementation schedule”, he said.
According to Russo, the strategy goes beyond merely awarding contracts. It is also aimed at creating conditions for more Mozambican companies to enter the gas industry supply chain.
“Coral Norte has reached 70 percent completion and production set for 2028. Eni has been producing LNG in Mozambique since 2022 via Coral Sul FLNG. The initial operation, which raised doubts at the start due to the region’s weather and ocean conditions, demonstrated the viability of gas exploration using a deep-water floating unit. The company is now preparing for the launch of Coral Norte”, he said.
Russo noted that Coral Norte will be an enhanced version of the first unit, featuring higher production capacity and more advanced technology. “With the new platform, Mozambique is expected to boost its LNG production and export capacity, rising from approximately 3.5 percent to seven percent of global LNG output”, he said.
Eni anticipates that, with Coral Norte and other projects, Mozambique will become a leading LNG producer and exporter in Sub-Saharan Africa.
“Instead of large gatherings where many companies have limited space to showcase their capabilities, Eni offers the opportunity for one-on-one meetings. In these meetings, companies present who they are, what they can do, and the services they can provide. For its part, Eni explains its needs and seeks to identify opportunities for collaboration”, he said.
With the publication of local content legislation in 2026, the company found that its methodology was largely aligned with the new legal framework.
One of the elements highlighted by Russo is the requirement for at least 20 percent participation by a Mozambican company or citizen for an entity to be eligible for certain benefits associated with local content.
With Coral Norte under construction, a third FLNG unit in the pipeline, and a supply chain that Eni aims to expand, the challenge now lies in transforming major investments in the gas sector into lasting opportunities for domestic companies.
Pc/Am/
