Mozambique has announced that it will start exporting Liquefied Natural Gas (LNG) extracted from the Coral South field, off the coast of Palma district, in the northern province of Cabo Delgado, in October.
According to estimates, the initial production could contribute an additional 1.1 percentage points to the country’s economic growth in 2023.
The LNG will be produced on a floating platform, belonging to a consortium led by the Italian energy company, Eni.
The Coral South project is expected to produce 3.4 million tons of LNG per year over its estimated 25-year span.
A second onshore project in Area One of the Rovuma Basin, wher the operator is French company TotalEnergies has stopped. TotalEnergies called force majeur over insurgent attacks in the area.
Elsewhere, Tanzania is edging closer to its dream of developing a $40 billion liquefied natural gas project after the government and companies, including Equinor ASA and Shell Plc, signed initial agreements.
Tanzania has recoverable natural gas reserves of more than 57.5 trillion cubic feet, according to Energy Minister January Makamba. It would join with neighboring Mozambique to develop Africa’s new LNG hub. Mozambique is, however, struggling with an insurgency that saw TotalEnergies SE suspend operations at its multi-billion project in the southeast African country.