ADNOC's XRG pushes ahead with Coral North FLNG investment

Energy company XRG, along with its partners Eni, CNPC, ENH, and Kogas, has announced a positive final investment decision (FID) for the Coral North Floating LNG (FLNG) project in Mozambique’s Rovuma Basin. The decision was confirmed at a signing ceremony in Maputo attended by Mozambican President Daniel Francisco Chapo.

Coral North will build on the earlier Coral South project, the first FLNG unit deployed in African waters, and is expected to add 3.55 million tonnes per annum (mtpa) of LNG production capacity offshore Mozambique.

The move follows XRG’s purchase of Galp’s 10 per cent stake in the Area 4 concession in March 2025, marking the company’s first investment in Mozambique. Through this acquisition, XRG now has exposure to three major projects in the country: Coral South FLNG, Coral North FLNG, and the planned Rovuma LNG onshore development, which together represent more than 25 mtpa of potential LNG capacity.

XRG said the project is an important step in unlocking Mozambique’s natural gas reserves and expanding global LNG supply at a time of high demand.

The company has recently expanded its international gas portfolio through acquisitions in the United States, Azerbaijan, Egypt, Turkmenistan, and Mozambique. This includes an 11.7 per cent equity stake in Phase 1 of the Rio Grande LNG project in Texas, strengthening its footprint in the U.S. market.

Coral North’s approval highlights Mozambique’s growing role in global LNG production and reflects continued investment interest in the country’s offshore gas resources.