Mozambique Approves Financing of Up to $7.2 Billion for Coral Norte Project

Key Facts

Mozambique’s government approved a financing structure for the Coral Norte floating liquefied natural gas project, with a total ceiling of up to $7.2 billion, at a cabinet meeting held on September 15, 2026, according to Mozambique’s National Petroleum Institute. The structure allows up to 70% of the financing to come from debt, with equity accounting for at least 30%. The decision sets a framework for raising the financing required for the project while keeping equity at a minimum level rather than adopting a fixed split between debt and equity. Institute Chairman Nazário Bangalane said approval of the instruments marked "a decisive milestone for the project’s financial structuring and realization." He added that the project strengthens the position of the Rovuma Basin as a strategic gas supplier to domestic and international markets.

The approval also covers financing for the Mozambican National Hydrocarbons Company’s (ENH) share. The institute said ENH Rovuma Área 4 Investments FZCO will contract the financing as borrower, with the participation of affiliates and the ENI, KOGAS and ADNOC concessionaires. The cabinet also authorized the creation of ENH Coral Norte, SU, S.A. and the acquisition of its entire share capital by ENH Rovuma Área 4, S.A. The institute said the entity’s establishment "allows separate financial and accounting management of ENH’s stake in the project." The public statement does not cite a general state exemption from debt or financial liabilities; it sets out financing arrangements for ENH’s share and the entity designated to manage it.

The project is located in offshore Area 4 of the Rovuma Basin, off Cabo Delgado province in northern Mozambique, and involves developing gas from the Coral Eocene 441 reservoir. The design is based on a floating liquefaction unit with production capacity of 3.55 million tonnes a year and a planned operating life of 30 years. This capacity gives the project a role in adding Mozambican LNG production to supplies bound for domestic and international markets. Under the development plan, up to 25% of total oil and gas produced may be made available to the domestic market. The plan specifies that 10% will be available when production begins, which is expected in the second half of 2028.

Approval of the financing structure followed progress in the project’s investment process: the cabinet approved the development plan in April 2025, and the project consortium announced its final investment decision on October 2 of the same year. By November 2025, overall progress had exceeded 43%, according to the National Petroleum Institute. Milestones set for 2026 included drilling production wells, completing the financial structure, gas purchase and sale agreements, and financial close. The September decision falls within this financing phase, following the final investment decision, while production remains targeted for the second half of 2028. The timeline places financing for ENH’s share and the arrangement of borrowing instruments among the work tied to completing the project before production.

The National Petroleum Institute estimates that the project will generate revenue of about $23 billion over its operating life. The institute also projects contracts for Mozambican companies worth about $800 million during the first six years, with their value potentially exceeding $3 billion. When announcing the final investment decision, the institute’s chairman said the project would allow the country to increase revenue over its lifetime and create jobs and contracts for Mozambican companies supplying goods and services. President Daniel Chapo described the project at the time of the investment decision as "a decisive step toward Mozambique’s economic independence and improving the lives of millions of Mozambicans." These figures and estimates remain tied to the project’s announced plan, which targets production in 2028.

Coral Norte is the second floating liquefied natural gas project in the same basin, after Coral Sul, which began production in October 2022. By the announcement of Coral Norte’s final investment decision, Coral Sul had exported more than 123 cargoes of natural gas and 17 cargoes of condensates to Asian and European markets, according to the institute. The earlier project provides an operating backdrop for the development of LNG production in the Rovuma Basin, while Coral Norte adds a new unit with annual capacity specified in the development plan. The institute’s next milestones for 2026 include drilling production wells, completing the financing structure and contracts, and financial close. The project’s announced production start remains in the second half of 2028.