The Mozambican government has approved a $7.2 billion investment for the development of the Coral North gas field, a major deepwater gas project located in Area 4 of the Rovuma Basin. The announcement was made by Cabinet spokesperson Inocêncio Impissa during an April 8 press conference, marking a significant step forward for the country’s liquefied natural gas (LNG) ambitions. The project, situated approximately 10 kilometers north of the existing Coral South field, will involve drilling six additional production wells and installing a floating LNG (FLNG) facility, with commercial operations expected to commence by the second quarter of 2028.
Industry analysts suggest this development significantly improves Samsung Heavy Industries’ chances of securing the FLNG construction contract. The South Korean shipbuilder previously won the contract for Coral South’s FLNG facility, establishing valuable experience in Mozambique’s challenging offshore environment. The Coral North gas field holds estimated reserves of 1.37 billion barrels of oil equivalent, with natural gas accounting for 96% of the total. Project planners anticipate annual production of 3.5 million tons of LNG and 1.5 million barrels of light condensate, with total development costs reaching $7.3 billion.
Korea Gas Corporation (KOGAS), which holds a 10% stake in Mozambique’s Area 4, is currently evaluating potential participation in the Coral North project. The South Korean energy company has been active in the region since 2007 and made a final investment decision for the Coral South FLNG project in 2017. KOGAS’s existing operations in the area proved profitable in 2023, generating $130 million in revenue from sales of 2.66 million tons of LNG. The company’s board approved preliminary work for the Coral North FLNG development last year, indicating strong interest in expanding its Mozambican operations.
The investment approval represents a major milestone for Mozambique’s energy sector and positions the country to become a more significant player in global LNG markets. With the FLNG facility expected to begin operations in 2028, the project will contribute to meeting growing global demand for natural gas, particularly in Asian and European markets. The development also reinforces Samsung Heavy Industries’ position as a leading contractor for complex offshore energy projects, while providing KOGAS with opportunities to expand its international portfolio. As the project moves forward, attention will focus on final contract awards and the timeline for bringing the new facility online.
