Mozambique FLNG Project
Technip Energies Awarded Significant Contract for Coral Norte Floating LNG Project in Mozambique
Anonymous
Technip Energies, working with JGC Corporation and Samsung Heavy Industries, has secured a contract worth more than €1 billion to build the Coral Norte floating liquefied natural gas facility off the coast of Mozambique, according to GlobeNewswire. The deal was signed on June 8, 2026, and awarded by Mozambique Rovuma Venture, a joint venture led by Italian energy giant Eni.
The project will produce 3.6 million tonnes of LNG per year. Combined with the existing Coral Sul facility, the Coral hub will reach a total capacity of 7 million tonnes per annum — doubling its current output, Daily Guardian reported.
A $7.2 Billion Bet on Mozambique's Gas Reserves
The Coral Norte project carries a total estimated cost of $7.2 billion, according to Global Energy Monitor. The Rovuma Basin, where the facility will operate, holds between 160 and 200 trillion cubic feet of natural gas. That makes it one of the largest untapped gas reserves in the world.
The Final Investment Decision was reached in October 2025. Just three months later, in January 2026, Samsung Heavy Industries held a hull launch ceremony at its shipyard in Geoje, South Korea. Mozambican Minister Estevão Pale attended the event, calling it a milestone for national economic development.
'Design One, Build Many' Strategy Cuts Risk and Time
Coral Norte is built as an enhanced replica of Coral Sul, Africa's first deepwater floating LNG facility. Technip Energies CEO Arnaud Pieton said the approach shows "how a standardized model can accelerate large-scale offshore project delivery." Industry analysts say copying a proven design cuts the risk of cost overruns and speeds up the path to first gas.
The FLNG hull measures 404 meters long, 66 meters wide, and 39 meters tall. Samsung Heavy Industries filed regulatory documents in South Korea confirming a contract worth 3.65 trillion won — roughly $2.65 billion — for an "African shipowner," according to Seoul Economic Daily. First gas production is projected for 2028.
Mozambique Stands to Earn $23 Billion in Tax Revenue
Eni CEO Claudio Descalzi said the project is "projected to generate $23 billion in tax revenues" for Mozambique over its lifetime. Eni also promised to award $3 billion in sub-contracts to local Mozambican firms, according to Journal of Petroleum Technology. State-owned energy company ENH holds a 10% stake in the venture.
Some Mozambican officials worry the offshore model creates an "enclave economy" with fewer local jobs than onshore projects. By contrast, TotalEnergies is restarting its $20 billion onshore LNG facility nearby, after lifting force majeure in late 2025 following years of insurgency in Cabo Delgado province.
Europe Looks to Mozambique to Replace Russian Gas
The International Energy Agency has flagged Coral Norte as a key non-Russian LNG source for Europe. The extra 3.6 Mtpa of supply starting in 2028 comes as European nations continue to cut ties with Russian energy. Mozambique is on track to become the third-largest LNG producer in Africa by that year, potentially rivaling Nigeria and Algeria.
Environmental groups have raised concerns about the project's impact on the Rovuma Basin's marine ecosystem. Eni says the facility uses zero-flaring technology and high-efficiency waste heat recovery systems to reduce its environmental footprint. A mandated sustainability plan also targets clean cooking access across the SADC region.
Sentiment
NeutralNEGATIVENEUTRALPOSITIVE
Publishers
3
Articles
3
Reach
4
A
AnonymousAuthor
