- General
- October 2, 2025
- 4 minutes read
Italy’s Eni Approves $7.2B LNG Project In Mozambique
Eni (BIT: ENI), an Italian oil and gas giant, has signed off on a deal to build a $7.2bn floating…
Eni (BIT: ENI), an Italian oil and gas giant, has signed off on a deal to build a $7.2bn floating liquefied natural gas (FLNG) project in Mozambique, a southern African nation with abundant gas reserves. If accomplished, the FLNG facility would more than double Mozambique’s natural gas production.
The Coral North project, as it’s named, aims to build a massive floating facility for drilling, processing, and exporting natural gas from Mozambique’s northern coastline. It could produce up to 3.6 million tons of LNG annually, more than Mozambique’s current 3.3 million-ton annual production.
Mozambique began discovering massive gas reserves off its coast in the early 2010s. It had begun producing and exporting gas as early as 2004, but in small quantities. The discovery of massive gas reserves signalled Mozambique’s entry into the big leagues of gas-producing nations.
- In 2019, French oil and gas giant TotalEnergies cemented Mozambique’s big-league entry by agreeing to invest $20 billion in an FLNG facility off the country’s coast that could produce 13 million tons annually.
- However, a 2021 terrorist attack on a town close to TotalEnergies’ facility halted its construction. The attack, claimed by Islamist rebels affiliated with the Islamic State terrorist group, left over 1,000 people dead, according to conflict monitor ACLED. Construction hasn’t restarted, although signals indicate it could start this year amid improved security measures. However, even if construction restarts this year, production won’t begin till at least 2029, according to TotalEnergies.
Eni’s approval has given Mozambique another vote of confidence in its gas industry. Eni already operates floating gas facilities on Mozambique’s coast, but not on the scale of the planned Coral North project. Currently facing an economic downturn, the Mozambican government welcomed Eni’s approval of a project that could help it diversify its economy.
Mozambique’s exports are dominated by natural resources, mainly coal, natural gas, aluminium, iron ore, and palm oil. The country’s top export partners are neighbouring South Africa, China, and India, respectively.
