Eni and its partners have reached a Final Investment Decision (FID) for the Coral North floating liquefied natural gas (FLNG) project in Mozambique's Rovuma Basin, their second such development in the region. This project, with a processing capacity of 3.6 million tons per annum (mtpa) and targeted for delivery by 2028, will leverage insights from the operational Coral South project to optimize costs and reduce execution risks. Upon completion, Coral North will elevate Mozambique's total LNG output to over 7 mtpa, positioning the country as Africa's third-largest LNG producer and significantly contributing to global energy security and its own economic growth.
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Eni & Partners Greenlight Second FLNG Development in Mozambique Read MoreHide Full Article Key Takeaways Eni and partners approved the Coral North FLNG project in Mozambique's Rovuma Basin. The project will add 3.6 mtpa capacity, raising Mozambique's LNG output above 7 mtpa. Coral North will apply lessons from Coral South to cut costs and shall remain on track for delivery by 2028. Eni S.p.A (E - Free Report) , an Italian integrated energy company, stated that it has reached a final investment decision (FID) alongside its partners to move forward with the Coral North floating liquefied natural gas (FLNG) platform in Mozambique. The project is being developed by a joint venture consisting of operator Eni, with a 50% stake; China National Petroleum Company, holding a 20% stake; and Korea Gas, ENH and XRG, each holding a 10% stake. The FLNG project will extract and produce gas from the northern part of the Area 4 Coral gas reservoir in the Rovuma Basin, offshore Mozambique. Gas production will be supported by an advanced floating LNG facility with a processing capacity of 3.6 million tons per annum (mtpa). The Coral North FLNG project is Eni’s second development in Mozambique, followed by Coral South. These two FLNG facilities are expected to bring the total LNG production from Mozambique to more than 7 mtpa, positioning the country as the third-largest LNG producer in Africa. Eni mentioned that the Coral North project will leverage Mozambique’s significant gas resources and its strategic geographic location. The development of this project is expected to enhance the country’s contribution to global energy security and support its economic and industrial growth. The company will utilize the knowledge and experience gained from Coral South and apply it to the development of Coral North. This should help Eni fast-track the development of Coral North, optimizing costs and making the project more reliable and efficient. It should also reduce execution risks associated with the project. The company has targeted the delivery of this project by 2028. Mozambique holds substantial offshore gas reserves in the Rovuma Basin, which contains approximately 2,400 billion cubic meters of gas. Coral South is the first development to produce gas from this basin and has been operational since 2022. The Coral North project is expected to boost gas production from the basin and further amplify Mozambique’s economic growth. Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services. Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility. Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp had estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock Eni & Partners Greenlight Second FLNG Development in Mozambique Key Takeaways The FLNG project will extract and produce gas from the northern part of the Area 4 Coral gas reservoir in the Rovuma Basin, offshore Mozambique. Gas production will be supported by an advanced floating LNG facility with a processing capacity of 3.6 million tons per annum (mtpa). The Coral North FLNG project is Eni’s second development in Mozambique, followed by Coral South. These two FLNG facilities are expected to bring the total LNG production from Mozambique to more than 7 mtpa, positioning the country as the third-largest LNG producer in Africa. Eni mentioned that the Coral North project will leverage Mozambique’s significant gas resources and its strategic geographic location. The development of this project is expected to enhance the country’s contribution to global energy security and support its economic and industrial growth. The company will utilize the knowledge and experience gained from Coral South and apply it to the development of Coral North. This should help Eni fast-track the development of Coral North, optimizing costs and making the project more reliable and efficient. It should also reduce execution risks associated with the project. The company has targeted the delivery of this project by 2028. Mozambique holds substantial offshore gas reserves in the Rovuma Basin, which contains approximately 2,400 billion cubic meters of gas. Coral South is the first development to produce gas from this basin and has been operational since 2022. The Coral North project is expected to boost gas production from the basin and further amplify Mozambique’s economic growth. E’s Zacks Rank and Key Picks Ecurrently carries a Zacks Rank 3 (Hold).Some better-ranked stocks from the energy sector are Archrock Inc. (AROC - Free Report) , Enbridge Inc. (ENB - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) , each carrying a Zacks Rank 2 (Buy) at present. You can see the complete list of today’s Zacks 1 Rank (Strong Buy) stocks here. Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services. Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility. Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp had estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Eni S.p.A. (E) has secured a significant long-term growth catalyst by reaching a final investment decision (FID) on the Coral North floating liquefied natural gas (FLNG) project in Mozambique's Rovuma Basin. This project is poised to add 3.6 million tons per annum (mtpa) of LNG capacity, which, combined with the existing Coral South facility, will elevate Mozambique's total output to over 7 mtpa and establish it as Africa's third-largest LNG producer. A key factor mitigating execution risk is the explicit strategy to apply learnings from the operational Coral South project, which is expected to optimize costs and ensure the targeted 2028 delivery. This FID solidifies Eni's role as a key operator in developing the Rovuma Basin's substantial gas reserves (estimated at 2,400 billion cubic meters) and strengthens its position in the global energy security landscape. While this is a fundamentally positive development for Eni, the provided context notes its current Zacks Rank 3 (Hold), contrasting it with better-ranked peers in the energy sector.
AI-powered research, real-time alerts, and portfolio analytics for institutional investors.
Request a DemoOverall Sentiment
strongly positive
Sentiment Score
0.75
Ticker Sentiment
