Mozambique LNG Project: Eni Agreement Imminent
Mozambique secures $8 Billion for coral Norte LNG Project, Eyes Further Investment
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– Updated as of September 30, 2024, 21:10:39 UTC
New LNG project Advances
Teh Mozambique government and Italian energy giant Eni are set to finalize a financing agreement for the Coral Norte liquefied natural gas (LNG) project on Thursday, October 2, 2024, in Maputo. Florical Mucave, President of the House of Energy of Mozambique, announced the impending agreement on Tuesday, September 30, 2024.
The Coral Norte project involves the installation of a floating LNG factory and represents an investment of approximately $8 billion (6.8 billion euros), according to mucave. He stated the final investment decision woudl be signed this week.
Expanding Mozambique’s LNG Capacity
Eni currently operates the Coral Sul floating LNG facility in the Rovuma basin, off the coast of Cabo Delgado province. The frist LNG cargo from Coral Sul was exported in November 2022. This new project builds on existing infrastructure and demonstrates continued confidence in Mozambique’s gas reserves.
Mozambique is also anticipating the resumption of the Mozambique LNG project, led by TotalEnergies, which was halted following a jihadist attack in 2021. Mucave expressed optimism that TotalEnergies will lift its force majeure status and return to Mozambique before the end of 2024, with a planned investment of $20 billion.
Future Investment Prospects
Further investment is also expected from ExxonMobil. Mucave indicated a final investment decision of $7 billion between ExxonMobil and Mozambique for another gas project in the same region is anticipated by the end of 2026.Both the TotalEnergies and ExxonMobil projects will utilize onshore liquefaction facilities.
according to a 2024 report by Deloitte, these projects have the potential to position Mozambique as one of the world’s top ten gas producers, contributing 20% of African gas production by 2040. [Deloitte Report on Mozambique Gas Production](https://www2.deloitte.com/za/en/pages/energy-resources-and-industrials/articles/mozambique-lng-potential.html)