The Board of Directors of the African Development Bank approved on 14 January a $150 million senior loan to support the development of the Coral North Floating Liquefied Natural Gas Project, a transformative energy infrastructure initiative located offshore Mozambique.
Building on the success of Coral South FLNG, which became operational in 2022, the Coral North FLNG Project will develop, construct, and operate a floating LNG facility with annual capacity of 3.55 million metric tonnes approximately 55 kilometers off the coast of northern Mozambique’s Cabo Delgado province.
The project is led by Eni S.p.A., a global energy company with extensive LNG expertise, and is expected to cost more than $7 billion. In addition to the African Development Bank Group, financing will be provided by other development finance institutions, export credit agencies and commercial lenders. Coral North is estimated to generate more than $20 billion in fiscal revenues over its lifetime. In addition to significantly boosting the Mozambican economy, it will create considerable short-term and permanent job opportunities in construction and operations.
The project commits to set aside a portion of LNG production for, clean cooking access, domestic industrial development, gas export to the Southern African Development Community (SADC) region, as well as development of gas-to-power projects, which will enhance the region’s energy security and resilience.
The project will also increase Africa’s contribution to, and benefit from, the increasing global demand for LNG while also strengthening Mozambique’s position as a leading player in SADC’s energy market.
Coral North FLNG represents a landmark project in Africa’s energy transition. Building upon previous LNG investments in Mozambique, it further positions the country as a global LNG supplier while delivering significant socio-economic benefits, including job creation, fiscal revenues, and enhanced energy security. The support underscores a commitment to energy security as well as climate-resilient infrastructure and sustainable industrialisation on the continent.
Source: AfDB / Media Release
