Eni Approves $7.2 Billion LNG Project in Mozambique

What's Happening?

Eni SpA has approved a $7.2 billion investment for the Coral Norte liquefied natural gas (LNG) project off the coast of Mozambique. This project is expected to double Mozambique's LNG production capacity, producing 3.6 million tons annually. The Coral Norte project will utilize the same design as the Coral Sul project, which began exports in 2022. The initiative marks a significant development in Mozambique's efforts to capitalize on its substantial gas reserves, which have been delayed by regional militancy. The project is anticipated to commence production in 2028.

Why It's Important?

The approval of the Coral Norte project is a pivotal moment for Mozambique, potentially transforming its economy by leveraging its natural gas resources. As the third-largest LNG producer in Africa, Mozambique stands to gain substantial economic benefits, including job creation and increased revenue. The project also contributes to the global LNG supply, which is crucial for meeting rising energy demands and supporting the transition to cleaner energy sources. Additionally, the investment underscores the importance of international partnerships in developing energy infrastructure in emerging markets.

What's Next?

With the project set to begin production in 2028, Eni and its partners will focus on the construction and development phases. The Mozambican government is expected to work closely with international stakeholders to ensure the project's success and address any security concerns related to regional militancy. The project could also attract further investments in Mozambique's energy sector, enhancing its role as a key player in the global LNG market. As the project progresses, stakeholders will monitor its impact on local communities and the broader economy.