Mozambique: AfDB Approves $150M For Coral North Floating LNG Project

The African Development Bank has approved a $150 million loan to support the development of the Coral North Floating Liquefied Natural Gas (FLNG) Project, a transformative energy infrastructure initiative located offshore Mozambique.

The Coral North FLNG Project will develop, construct, and operate a floating LNG facility with an annual capacity of 3.55 million metric tonnes, situated approximately 55 kilometres 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 expected to generate more than $20 billion in fiscal revenues over its lifetime. Beyond significantly boosting Mozambique’s economy, it will create substantial short-term and long-term job opportunities in both construction and operations.

The project commits to dedicating a portion of LNG production to clean cooking access, domestic industrial development, gas exports to the Southern African Development Community (SADC) region, and the 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 benefits from—the rising global demand for LNG, while strengthening Mozambique’s position as a key player in the SADC energy market.

Coral North FLNG represents a landmark development in Africa’s energy transition. Building on 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 African Development Bank’s support underscores its commitment to energy security, climate-resilient infrastructure, and sustainable industrialisation across the continent.