Eni & Partners Greenlight Second FLNG Development in Mozambique

Eni S.p.A E, 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.

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, Enbridge Inc. ENB and Galp Energia SGPS SA GLPEY, 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.

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