The African Development Bank has approved a $150 million senior loan to support the development of the Coral North Floating Liquefied Natural Gas (FLNG) Project, a major offshore energy initiative in Mozambique. The decision, approved by the Bank’s Board of Directors on 14 January, marks a significant step forward in strengthening the country’s energy infrastructure and economic growth.
The Coral North FLNG Project builds on the success of the Coral South FLNG facility, which began operations in 2022. The new project will involve the development, construction, and operation of a floating LNG production unit with an annual capacity of 3.55 million metric tonnes. The facility will be located approximately 55 kilometers off the coast of Cabo Delgado province in northern Mozambique.
Led by global energy company Eni S.p.A., which has extensive experience in LNG development, the project is expected to cost more than $7 billion. Alongside the African Development Bank Group, financing will come from a mix of development finance institutions, export credit agencies, and commercial lenders. Over its lifetime, the Coral North project is projected to generate more than $20 billion in fiscal revenues, providing a substantial boost to Mozambique’s economy while creating both short-term construction jobs and long-term operational employment opportunities.
A key component of the project is its commitment to domestic and regional development. A portion of LNG production will be reserved to support clean cooking initiatives, domestic industrial growth, gas-to-power projects, and gas exports to countries within the Southern African Development Community. These measures are expected to enhance regional energy security, resilience, and access to reliable power.
The Coral North FLNG Project will also strengthen Africa’s role in meeting rising global demand for liquefied natural gas while reinforcing Mozambique’s position as a leading energy player within the SADC region. By expanding the country’s LNG capacity, the project contributes to economic diversification and regional integration.
Overall, Coral North represents a landmark investment in Africa’s evolving energy transition. Building on earlier LNG developments in Mozambique, the project supports sustainable industrialisation, climate-resilient infrastructure, and long-term energy security, while delivering significant socio-economic benefits through job creation and increased public revenues.
