Eni to sign FID for Coral North project in Mozambique, sources say

Italian energy group Eni is expected to make a final investment decision this Thursday for Mozambique's second floating liquefied natural gas (LNG) platform, Coral North, which is projected to produce 3.5 million metric tons of LNG annually. This strategic move will effectively double Mozambique's existing LNG output from the offshore Rovuma Basin, following the successful launch of Eni's Coral South in 2022, and highlights the company's ability to advance offshore projects unimpeded by security concerns that have affected onshore developments by competitors.

Analysis

Italian energy group Eni is poised to approve a Final Investment Decision (FID) for its second floating liquefied natural gas (LNG) platform in Mozambique, Coral North. This project is significant, as it is expected to produce 3.5 million metric tons of LNG annually, effectively doubling the country's output from the offshore Rovuma Basin. This development builds on the success of Eni's first platform, Coral South, which commenced exports in 2022, signaling strong execution momentum. Critically, Eni's offshore strategy has insulated its operations from the security-related delays that have stalled major onshore LNG projects led by competitors TotalEnergies and Exxon Mobil. This demonstrates a key operational and strategic advantage for Eni, allowing it to solidify its production growth pipeline in a promising emerging market while peers face material setbacks.

Key Decisions for Investors

• Investors should view the expected FID for Coral North as a positive catalyst for Eni, as it de-risks a major growth project and reinforces the company's superior execution capability in a challenging region.
• The operational contrast highlights a material risk for TotalEnergies and Exxon Mobil's Mozambique ventures, warranting a re-evaluation of exposure to these companies based on their onshore project delays.
• Monitor how the addition of 3.5 million metric tons of annual LNG production from Eni's new platform will influence long-term global LNG supply-demand balances and pricing.