The African Development Bank ( AfDB ) Group has approved a US$150 million senior loan to support the development of the Coral North Floating Liquefied Natural Gas Project in offshore Mozambique.

Building on the success of Coral South FLNG, which became operational in 2022, the Coral North FLNG Project will develop, construct, and operate a floating LNG facility with annual capacity of 3.55 million metric tonnes.

The project, located around 55 kilometers off the coast of northern Mozambique’s Cabo Delgado province, is led by Eni of Italy.

Total project cost is estimated at more than US$7 billion. In addition to the AfDB, financing will be provided by other development finance institutions, export credit agencies, and commercial lenders.

The project commits to set aside a portion of LNG production for clean cooking access, domestic industrial development, gas exports to the Southern African Development Community ( SADC ) region, and the development of gas-to-power projects, thereby enhancing the region’s energy security and resilience.

It will also increase Africa’s contribution to, and benefit from, the increasing global demand for LNG while also strengthening Mozambique’s position as a leading player in the SADC energy market.