AfDB Backs Coral North FLNG with $150M Loan

The African Development Bank (AfDB) has approved a $150 million senior loan to advance the Coral North Floating Liquefied Natural Gas (FLNG) Project offshore Mozambique, marking a key milestone in the country’s energy sector expansion.

Approved by the AfDB Board on 14 January 2026, the financing supports the development, construction, and operation of a second FLNG facility with an annual capacity of approximately 3.55 million metric tonnes. Located about 55 km off Cabo Delgado province in northern Mozambique, the project builds directly on the successful Coral South FLNG, which has been operational since 2022.

Led by Eni S.p.A. in partnership with other stakeholders, Coral North forms part of a more than $7 billion investment. Additional funding comes from development finance institutions, export credit agencies, and commercial lenders. The initiative is on track for first LNG cargo in the third quarter of 2028, with a 25-year design life, and will effectively double Mozambique’s total LNG output to around 7 million tonnes per annum.

Beyond export revenues, the project is projected to generate over $20 billion in fiscal income for Mozambique over its lifetime, while creating substantial short- and long-term employment in construction and operations. A dedicated portion of production will support domestic priorities, including clean cooking initiatives, industrial gas use, gas-to-power developments, and exports to the Southern African Development Community (SADC) region—enhancing energy access, security, and resilience across Southern Africa.

Coral North as a strategic step in positioning Mozambique as a major global LNG supplier while aligning with broader continental goals of sustainable industrialization, climate-resilient infrastructure, and inclusive economic growth. This landmark investment underscores the critical role of strategic financing in unlocking Africa’s natural gas potential for both national development and global energy markets.