Coral North LNG Project Boosts Mozambique’s Role in Global Energy

Energy company XRG, along with its partners Eni, CNPC, ENH, and Kogas, has confirmed the final investment decision (FID) for the Coral North Floating Liquefied Natural Gas (FLNG) project in Mozambique’s Rovuma Basin. The announcement was made during a signing ceremony in Maputo, attended by Mozambican President Daniel Francisco Chapo. The project marks an important milestone for Mozambique’s growing role in global energy markets.

Coral North will build on the success of the earlier Coral South project, which was the first FLNG unit in African waters. The new development is expected to add 3.55 million tonnes per annum (mtpa) of LNG production capacity offshore Mozambique. This expansion comes at a time when global demand for natural gas continues to rise, especially in Asia, Europe, and the Middle East.

Mozambique Strengthens Its LNG Position

The Coral North project represents the second phase of Mozambique’s LNG journey. Coral South already proved that FLNG can work successfully in the region. Coral North will expand this success, positioning Mozambique as a competitive exporter of natural gas to the world.

The Rovuma Basin is one of the richest natural gas areas in Africa. International companies have been interested in its resources for more than a decade. The approval of Coral North confirms that investors continue to see Mozambique as a reliable partner in global energy supply.

Earlier in March 2025, XRG purchased Galp’s 10 percent stake in the Area 4 concession, giving it a strong entry point into Mozambique. With this move, XRG now has interests in three key projects: Coral South FLNG, Coral North FLNG, and the upcoming Rovuma LNG onshore project. Together, these could bring more than 25 mtpa of LNG capacity, making Mozambique a major player in global gas supply.

Unlocking Natural Gas for the World

Coral North is more than just another LNG project. It represents a chance to unlock Mozambique’s vast gas reserves in a sustainable way. With a target of 3.55 mtpa, it will boost the country’s export capacity and help meet rising global demand.

LNG demand is increasing as countries move away from coal and oil. Nations in Asia are seeking cleaner fuels, while Europe is diversifying its gas sources. For Mozambique, this creates an opportunity to use its natural resources to meet worldwide energy needs.

The use of FLNG technology is also a major advantage. Unlike traditional onshore plants, FLNG allows production to happen directly offshore. This reduces costs, shortens timelines, and makes it easier to monetize gas resources. For Mozambique, it means faster benefits and more investment in the local economy.

Meeting Rising Global LNG Demand

The approval of Coral North comes at the right time. Countries around the world are looking for stable LNG supplies to meet their energy needs. Europe wants to reduce dependence on pipeline gas, Asia’s energy demand is rising quickly, and many countries are seeking cleaner fuels as part of the energy transition.

For XRG and its partners, Coral North is not only a project but also a strategic step in the global LNG market. Mozambique’s rich gas reserves and growing infrastructure make it a reliable supplier, adding to global energy security.

XRG has been expanding rapidly in international markets. The company has secured LNG and natural gas projects in the United States, Azerbaijan, Egypt, Turkmenistan, and Mozambique. This wide portfolio helps XRG reduce risks and ensures steady growth.

XRG’s Global Energy Growth

XRG’s investment in Mozambique fits into its larger international expansion strategy. The company recently bought an 11.7 percent stake in Phase 1 of the Rio Grande LNG project in Texas. This move gives XRG a strong position in the U.S. market, one of the biggest LNG exporters in the world.

The company has also increased its presence in Azerbaijan, Egypt, and Turkmenistan. These investments show XRG’s focus on securing resources in energy-rich regions. By spreading its operations across different countries, XRG ensures a balanced and competitive future.

Mozambique’s Place in the World Energy Market

Mozambique is quickly becoming one of the most important LNG exporters. With Coral South already operating and Coral North moving forward, the country is well on its way to delivering large amounts of gas to Asia, Europe, and the Middle East.

The planned Rovuma LNG onshore project will further boost Mozambique’s capacity. Together, these projects could provide over 25 mtpa of LNG. This level of production places Mozambique among the world’s top LNG producers, giving it a strong role in shaping future energy markets.

LNG and the Energy Transition

Coral North also plays an important role in the global energy transition. While renewable energy is growing, LNG remains the cleanest fossil fuel and is key in reducing carbon emissions. It is already replacing coal and oil in many countries, cutting pollution and supporting climate goals.

For Asia, LNG offers a reliable way to meet rising demand with less carbon impact. In Europe, it supports diversification and reduces reliance on pipeline gas. For the Middle East, projects like Coral North create opportunities for investment, cooperation, and technology sharing.

Relevance to the UAE and Middle East

The Coral North project is especially relevant for the UAE and the wider Middle East. As leading players in the global energy sector, countries like the UAE are looking for international projects that support energy diversification and long-term security.

The UAE has been investing in international LNG projects and renewable energy initiatives. Mozambique’s LNG growth aligns with the UAE’s vision of energy transition and its strategy to expand globally. Partnerships and joint investments between the Middle East and Africa could create new opportunities for both regions.

Dubai and Abu Dhabi, already established as global energy and finance hubs, stand to benefit from involvement in projects like Coral North. Such partnerships can encourage knowledge exchange, create investment opportunities, and strengthen energy security for the future.

Local Benefits for Mozambique

Beyond global markets, Coral North will bring strong benefits to Mozambique’s economy. Projects of this scale create jobs, improve infrastructure, and support community development. Coral South has already contributed to training and employing Mozambican workers, and Coral North will increase these opportunities.

The project will also encourage new investments in education, training, and local businesses. This ensures that Mozambique’s resources are not just exported but also used to drive long-term growth within the country.

Looking Ahead

The approval of Coral North is a clear signal of Mozambique’s strong future in the global LNG sector. With vast reserves, advanced FLNG technology, and international partnerships, the country is positioned as a reliable and growing supplier.

For XRG and its partners, the project strengthens their role in providing clean, secure, and sustainable energy to the world. For Mozambique, it is a step toward economic growth and international recognition. As global demand for LNG continues to rise, Coral North will be a central part of meeting those needs.