Mozambique Government Approves Debt-Free Financing for Coral Norte Gas Project

The Council of Ministers in Mozambique approved a financing structure for the Coral Norte floating liquefied natural gas project, a US$7.2 billion development located in Area 4 of the Rovuma Basin. According to Club of Mozambique, the decree ensures that the project’s implementation will not result in public debt or fiscal risks for the Mozambican state. The project is led by the Italian energy company Eni and includes participation from the state-owned National Hydrocarbons Company, known as ENH.

The approved framework dictates that up to 70% of the total investment will be secured through debt financing, while at least 30% will come from equity. The decree explicitly states that financiers will not assume rights that affect the state’s sovereignty or regulatory powers over natural resources. This structure aims to preserve the government's control while mobilizing the necessary resources for the megaproject. The Council also approved the incorporation of ENH Coral Norte to ensure the national concessionaire’s continued involvement.

Coral Norte will serve as the second floating LNG production facility in the Rovuma Basin. It is designed to produce 3.55 million tonnes of gas per year, nearly doubling the capacity of the existing Coral Sul facility, which began operations in 2022. The project follows a Final Investment Decision signed in Maputo on 2 October 2025 by partners including Eni, CNPC, Kogas, and XRG. Eni’s chief executive, Claudio Descalzi, stated at the signing that production was scheduled to begin in 2028, describing the timeline as a firm commitment rather than a dream.

The new facility is expected to position Mozambique as Africa’s third-largest LNG producer, behind only Nigeria and Algeria, with national production reaching approximately seven million tonnes annually. Agreements with the state also mandate that 25% of the project’s total production be supplied to the domestic market, alongside 100% of the condensate for power generation. This development is part of a broader effort to monetize the Rovuma Basin’s vast reserves, which also include a TotalEnergies project being restarted and an ExxonMobil venture awaiting a final investment decision.