African Development Bank Approves $150 Million for Mozambique’s Coral North FLNG Project
The African Development Bank has approved a $150 million senior loan to support the Coral North Floating Liquefied Natural Gas project, a major offshore energy development in Mozambique. The decision was endorsed by the AfDB Board of Directors on 14 January, marking a significant milestone in the country’s energy sector development.
Coral North FLNG builds on the success of the Coral South FLNG project, which began operations in 2022. The new development will involve the construction and operation of a floating LNG facility with an annual production capacity of 3.55 million metric tonnes, located approximately 55 kilometres offshore in northern Mozambique’s Cabo Delgado province.
The project is led by global energy major Eni and is estimated to cost more than $7 billion. Financing is being provided through a combination of development finance institutions, export credit agencies, and commercial lenders. Over its operational life, Coral North is expected to generate more than $20 billion in fiscal revenues, providing a significant boost to Mozambique’s economy. The project is also set to create substantial short-term employment during construction and long-term jobs during operations.
In addition to export-oriented LNG production, the project includes a commitment to allocate a portion of output to domestic clean cooking solutions, industrial development, gas-to-power initiatives, and regional gas exports within the Southern African Development Community. These measures are expected to enhance regional energy security and resilience.
Olufemi Terry of the AfDB’s Communication and External Relations Department described the project as a landmark in Africa’s energy transition. It not only positions Mozambique as a leading LNG supplier in the region but also delivers significant socio-economic benefits, including job creation, increased fiscal revenues, and improved energy security.
Source: angolanminingoilandgas.com
