AfDB Backs $150 Million Coral North LNG Project in Mozambique

The African Development Bank (AfDB) has approved a $150 million senior loan to support the Coral North Floating Liquefied Natural Gas (FLNG) Project, a major energy infrastructure initiative located offshore Mozambique. The decision was confirmed by the AfDB Board of Directors on 14 January.

Coral North FLNG, building on the success of Coral South FLNG which became operational in 2022, will develop, construct, and operate a floating LNG facility with an annual capacity of 3.55 million metric tonnes approximately 55 kilometres off the coast of northern Mozambique’s Cabo Delgado province.

Led by global energy company Eni S.p.A., the project is estimated to cost over $7 billion, with financing also provided by 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, significantly boosting Mozambique’s economy and creating substantial short-term and long-term employment opportunities in construction and operations.

The project includes a commitment to set aside a portion of LNG production for domestic clean cooking access, industrial development, gas exports to the Southern African Development Community (SADC) region, and gas-to-power projects, strengthening regional energy security and resilience.

“This project represents a landmark in Africa’s energy transition,” said Olufemi Terry of the AfDB’s Communication and External Relations Department. “It not only positions Mozambique as a leading LNG supplier in the region but also delivers socio-economic benefits including job creation, fiscal revenues, and enhanced energy security.”