Approvals include the mobilisation of up to 7.2 billion dollars and enable the financing of ENH's participation.
The Government approved the Financing Structure and the Terms and Conditions of the Direct Financing Agreement of the Northern Coral Project FLNG, by decree, during the 27th Ordinary Session of the Council of Ministers, held on 15 September 2026.
The instrument lays the foundations for the mobilisation of the financial resources necessary for the implementation of the project, including the engineering, construction, installation and mobilization of the floating liquefaction unit of natural gas, as well as the provision of the necessary support to funders.
The approved structure provides for a maximum overall funding of USD 7.2 billion, of which up to 70% can be provided by foreign capital and at least 30% by equity.
The Northern Coral Project FLNG, approved by Decree No 9/2025 of 11 April, provides for the development and production of natural gas Liquefied from the Coral Eocene 441 Deposit through a floating liquefaction unit with production capacity of 3.55 million tonnes per year over a period of 30 years.
At the same session, the Council of Ministers adopted the Resolution establishing the General Terms of Financing the equity component of the National Hydrocarbon Company, E.P. (ENH) in the project. The funding will be contracted by ENH Rovuma Area 4 Investments FZCO, as a lender, involving ENH Rovuma Area 4, S.A., ENH Coral Norte, SU, S.A., and concessionaires ENI, KG and DNAOC.
The Resolution authorising the establishment of ENH Coral Norte, SU, S.A., as well as the acquisition of all its capital by ENH Rovuma Area 4, S.A. The formation of this company will enable the financial and accounting management of ENH's participation in the undertaking to be individualised and ensure adequate segregation of associated risks.
Together, the three instruments establish the framework necessary for the structuring of the financing of the Northern Coral Project FLNG, located in Area 4 Offshore from the Rovuma Basin and create conditions for financing ENH's project implementation and participation, strengthening financial segregation, traceability and transparency in the management of the assets, revenues, costs, obligations and economic rights associated with the enterprise.
According to the Chairman of the INP Board of Directors, Mr Nazário Bangalane, "the approval of these instruments represents a decisive step towards the financial structuring and materialization of the Northern Coral Project FLNG, reinforcing the role of the Rovuma Basin as a strategic supplier of natural gas for the domestic and international market".
As the Oil Regulatory Authority, the INP will continue to monitor the implementation of the project within the framework of its legal powers, ensuring compliance with the technical, legal, environmental and regulatory requirements applicable to oil operations, as well as the exercise of its monitoring and sustainable exploitation of Mozambique’s oil resources.
Contacts for Information 21248300; 839511000 | INP Headquarters: 259, Maputo | comunicacao@inp.gov.mz
