Eni Agrees to Build $7.2 Billion LNG Export Plant in Mozambique
Eni, the Italian energy giant, has officially approved a $7.2 billion investment to build a new floating liquefied natural gas (LNG) export plant—Coral Norte—in Mozambique. This landmark decision not only doubles Mozambique’s LNG export capacity but also significantly enhances Eni’s portfolio, with meaningful implications for global supply and investor returns.
Project Approval and Strategic Highlights
The final investment decision (FID) for the Coral Norte floating LNG project was reached after securing Mozambican government approval in April 2025. This plant will replicate Eni’s successful Coral Sul platform, leveraging proven technology to bring 3.6 million tons of LNG per year to the market. The new facility will double the nation’s production capacity and is expected to come online later this decade, further strengthening Mozambique’s role in the global LNG industry.
Investor Impact: Financial Performance and Prospects
Eni’s financial reports for the first half of 2025 show robust performance amid volatile commodity prices. The company generated €1.715 billion in net profit attributable to shareholders, supported by a favorable tax mix in its upstream business, partially offsetting lower operational profit due to weaker oil prices. Importantly, Eni raised its cash flow forecasts for 2025 and confirmed continued strong shareholder returns; it delivered €1 billion in cash returns—comprising dividend payments and share buybacks—while reducing net borrowings to €10.2 billion.
The Coral Norte project’s approval offers clear value for investors:
Eni is positioned for continued cash flow growth, given rising LNG demand and premium pricing for flexible supply.
Diversification into Mozambique mitigates European market headwinds and strengthens Eni’s upstream earnings from lower-tax jurisdictions.
The floating platform design lowers risk, as such offshore projects remain resilient and largely unaffected by the security issues that have stalled other onshore developments in Mozambique.
Expansion Benefits and LNG Market Opportunity
The Coral Norte project underscores Eni’s broader strategic shift toward expanding LNG capacity and globalizing its asset base. Mozambique’s stable production outlook and established partnerships (with companies like TotalEnergies and ExxonMobil) reinforce Eni’s competitive edge. The project aligns well with expectations of increasing demand for flexible LNG supply in both mature and emerging markets, especially as global supply tightens later this decade.
Takeaway for Investors
For potential and current investors, Eni’s move signals increased opportunity for value creation, underpinned by solid financials, strategic diversification, and dividend stability. The new LNG project not only enhances future cash flows and returns but also positions Eni as a leader in the next phase of global LNG expansion.
By capitalizing on Mozambique’s vast reserves and political momentum, Eni is poised to deliver attractive, sustained returns in a market where security of supply and geographic diversity are crucial investment drivers.
