Mozambican business leaders have called on the sector to be better prepared to provide services to the new Coral Norte gas megaproject, worth up to US$3 billion over the next 30 years, emphasising its importance.
“This investment is a sign of confidence from international investors and renewed hope for Mozambicans (…) The project will directly improve the living conditions of around 100,000 people in Cabo Delgado through economic revitalisation, job creation, and the strengthening of local production chains,” reads the statement released on Monday by the Confederation of Economic Associations (CTA) of Mozambique, which represents the private sector.
The partners in Area 4 of the Rovuma Basin, off the coast of Cabo Delgado — Eni, Empresa Nacional de Hidrocarbonetos (ENH), CNPC, Kogas and XRG — signed the Final Investment Decision (FID) on Thursday for the new US$7.2 billion project, a replica of Coral South, also operated by Eni and producing since 2022. The new development will double Mozambique’s natural gas production to seven million tonnes per annum (mtpa) from 2028.
On the same day, Mozambican President Daniel Chapo urged national companies to take advantage of the US$3 billion in contracts that will be awarded by the new Coral Norte gas project, describing it as a “unique opportunity.”
“US$800 million in contracts are reserved for national companies in the first six years, and this figure could reach US$3 billion over the entire project,” he said, speaking at the FID signing ceremony for the new Coral Norte floating liquefied natural gas (LNG) platform.
For Mozambican business owners, this Final Investment Decision comes at a crucial time for the country, as it “takes firm steps towards economic recovery” following the impact of post-election demonstrations that led to job losses and the destruction of public and private infrastructure.
The Confederation of Economic Associations stated that the project will help the country consolidate its position as one of the world’s leading producers of natural gas and as an important player in meeting growing global demand for LNG, doubling Mozambique’s contribution to global energy security.
“This is the right time for the Mozambican private sector to prepare and train itself, becoming competitive and integrated into global supply chains,” the document adds. Business leaders also committed to collaborating with the government and the consortium in implementing the project, ensuring greater inclusion of micro, small, and medium-sized enterprises in service provision.
The executive director of the Italian energy company Eni, Claudio Descalzi, also confirmed on 2 October, at the signing of the FID, that within three years Coral Norte LNG production will commence, making Mozambique the third-largest producer in Africa.
Mozambique currently has three approved mega-development projects for the exploration of LNG reserves in the Rovuma Basin — among the largest in the world — off the coast of Cabo Delgado province. These include one led by TotalEnergies (13 mtpa), which is in the process of resuming after suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), which is awaiting a final investment decision, both located on the Afungi peninsula.
Source: Lusa
