Mozambique might be on its way to becoming a significant global LNG player, as three LNG projects are progressing in the African country. ENI took FID on Carol North FLNG in Area 4, while TotalEnergies and ExxonMobil are planning to progress their two land-based LNG projects in the near future, as soon as force majeure ends. 

About ENI’s project:

  • ENI recently announced that it has taken FID on the $7.2-billion Coral North (aka Coral Norte) FLNG project in Area 4, located in Mozambique’s offshore Rovuma Basin.
  • ENI (50 percent) is the operator for the project, with partners CNPC (20 percent), Kogas (10 percent), ADNOC subsidiary XRG (10 percent), and state company ENH (10 percent).
  • Coral North will have a capacity of 3.6 million tonnes per annum, targeting first production in 2028. 
  • According to ENI CEO Claudio Descalzi, the Coral North FLNG project will alone generate about $23 billion in tax revenue for Mozambique.
  • ENI and its partners have been producing LNG from Coral South (aka Coral Sul) FLNG project (3.4 million tonnes per annum of capacity) since 2022. 

On TotalEnergies’ project:

  • TotalEnergies’ $20-billion Mozambique LNG project has been in force majeure since early 2021 after a militia group attacked near the Afungi site in the country’s northern Cabo Delgado province.
  • In late September, TotalEnergies CEO Patrick Pouyanne said that force majeure could be lifted soon.
  • TotalEnergies bought the assets from Occidental after its acquisition of Anadarko in 2019. TotalEnergies took FID shortly thereafter.
  • Mozambique LNG is planned to have two LNG trains with 13 million tonnes per annum of capacity, with a potential to expand to 43 million tonnes per annum.  
  • TotalEnergies (26.5 percent) is the operator for the project, with partners Mitsui (20 percent), state company ENH (15 percent), India’s ONGC and BPRL (10 percent each), local company Beas Rovuma Energy (10 percent), and Thailand’s PTTEP (8.5 percent).

On ExxonMobil’s project:

  • ExxonMobil said that it could take FID on the Rovuma LNG project in early 2026, Arne Gibbs, general manager of ExxonMobil Mozambique, told audience during African Energy Week in Cape Town recently.
  • The $24-billion project is planned to have 18 million tonnes per annum of capacity, expanded from its previously planned 15.6 million tonnes per annum. 
  • ExxonMobil changed its design to have 12 smaller modules, each with 1.5 million tonnes per annum of capacity. 
  • The project will also be based in the Afungi site.
  • Rovuma LNG is operated by Mozambique Rovuma Venture SPA (MRV, 70 percent). MRV is an incorporated joint venture owned by equal partners ExxonMobil and ENI (40 percent each) and CNPC (20 percent). 
  • MRV and three equal partners: Kogas, ADNOC, and ENH (10 percent each) own Rovuma LNG project. 
  • ExxonMobil paid $2.8 billion in 2017 to obtain a 25-percent indirect interest in Area 4. ExxonMobil is not involved in the FLNG project for Area 4. 
  • In 2013, CNPC paid $4.2 billion to obtain 20 percent equity in Area 4 when oil prices were higher. CNPC is ENI’s partner for both FLNG projects in Area 4. 

What to watch:

  • How will TotalEnergies and ExxonMobil use their resources to help meet domestic gas needs, in addition to LNG exports? 
  • How will Mozambique’s government be able to keep the sites safe from future insurgents?
  • Will TotalEnergies and ExxonMobil be able to expand the capacity of the two land-based LNG projects?
  • Will neighboring Tanzania be able to move its deepwater-gas-to-LNG project forward, following the lead from Mozambique?

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