Mozambique’s Coral South project, led by ENI, establishes itself as one of the greatest energy achievement in Mozambique’s economic history. It exemplifies how African nations can harness their natural gas reserves to drive economic growth and energy security while contributing to the global energy transition.
Overview of Coral South’s Development.
The Coral South project in Mozambique is a landmark Floating Liquefied Natural Gas (FLNG) development in the ultra-deep waters of the Rovuma Basin, about 241 km northeast of Pemba.
It is the first FLNG project in Mozambique and Africa, and the third worldwide, with a production capacity of 3.4 million tons per annum (mtpa) of LNG and 450,000 tons per year of condensates
The final investment decisions was signed in 2017 and achieved its first LNG shipment in November 2022, marking Mozambique’s entry into the global LNG market.
Coral South taps into the giant Coral gas reservoir, unlocking 85 trillion cubic feet of natural gas discovered by ENI and partners. The FLNG facility has a liquefaction capacity of 3.4 million tons per year and produces about 450 billion cubic meters of gas, which is then cooled and converted to LNG for export.
This project is a milestone for Mozambique, transforming it into an energy-producing country capable of independently supporting its development and contributing to global energy security.
Technical and Operational Milestones.
Coral South’s success is built on cutting-edge technology and operational excellence. The Coral Sul FLNG is a floating platform roughly the size of four football fields, combining advanced engineering with sustainability-focused design. It operates offshore in deep waters, a first for the African continent, and has been recognized internationally for its innovation and project management.
The project achieved all its strategic milestones within the initial timeframe and budget despite challenges such as the COVID-19 pandemic.
In terms of safety, Coral South Project achieved remarkable record of zero reportable accidents. The Coral South’s general manager, describe this total absence of incidents as something practically unheard of in this industry.
In February 2025, Coral South received the prestigious Project Excellence Award at the International Petroleum Technology Conference, highlighting its large-scale innovation and significant contribution to local content development.
ENI’s leadership and partnership model have been critical. The consortium includes ExxonMobil, CNPC, Galp, KOGAS, and Mozambique’s national company ENH, working collaboratively to ensure operational success and maximize local benefits.
Economic Impact and Benefits.
The Coral South project has had a profound economic impact on Mozambique. Since operations began, it has generated approximately 1,400 direct and indirect jobs for Mozambican professionals, fostering skills development and local employment. ENI has invested around $33 million in training young graduates and awarded contracts worth about $800 million to Mozambican small and medium enterprises, strengthening local business ecosystems.
At the 2025 Mozambique Mining and Energy Conference and Exhibition, Coral Sul’s general manager, Alfonso Pegano, revealed that the project is expected to inject over $15 billion into Mozambique’s economy over its lifetime, contributing about half of the country’s economic growth in 2023 alone. The project has met all strategic milestones on time and within budget despite challenges like the COVID-19 pandemic
Moreover, the project has already channeled $34 million in revenues to Mozambique’s state coffers, with projections estimating direct profits of $39.1 billion over 25 years from taxes, bonuses, fees, and profit sharing. These revenues are pivotal for Mozambique’s development ambitions, with plans to reinvest in health, education, and infrastructure, aligning with the government’s National Development Strategy.
ENI’s Perspective on Coral South.
ENI emphasizes that Coral South is more than a gas project; it is a catalyst for Mozambique’s sustainable development and energy security. According to ENI, the project “demonstrates the power of strong partnerships and is a testament to its state-of-the-art technology and impactful role in the economic development of Mozambique”. ENI remains committed to supporting Mozambique in harnessing its natural resources responsibly, ensuring long-term prosperity and contributing to the global energy transition by providing cleaner-burning LNG as a bridging fuel.
Conclusion
The Coral South project offers valuable lessons on monetizing natural gas potential in Africa. Through technological innovation, strategic partnerships, and a strong focus on local economic benefits, ENI and its partners have transformed Mozambique’s vast offshore gas reserves into a sustainable economic engine. As the world moves toward greener energy, Coral South stands as a model for how natural gas can be leveraged to foster development, create jobs, and support energy security while navigating the challenges of large-scale resource projects.
Mozambique’s Coral South project is not only a milestone for the country but also a beacon for other emerging gas producers on the continent aiming to balance economic growth with environmental responsibility and social progress.
