THE APPROVALS PAVED THE WAY FOR MOBILIZING UP TO $7.2 BILLION WHILE SECURING FINANCING FOR ENH’S EQUITY STAKE.
The Government of Mozambique has approved the Financing Structure as well as the Terms and Conditions of the Direct Financing Agreement for the Coral North FLNG Project via decree during the 27th Ordinary Session of the Council of Ministers, held on September 15, 2026.
The regulatory instrument sets the framework for mobilizing the financial resources required to execute the enterprise, including the engineering, construction, installation, and deployment of the floating liquefied natural gas (FLNG) unit, while providing the necessary credit support to lenders.
The approved structure sets a maximum overall financing ceiling of US$ 7.2 billion, of which up to 70% may be debt-financed and a minimum of 30% funded through equity.
Approved under Decree No. 9/2025 on April 11, the Coral North FLNG Project covers the development and production of Liquefied Natural Gas from the Coral Eocene 441 Reservoir, utilizing a floating liquefaction unit with a production capacity of 3.55 million tonnes per annum (MTPA) over a 30-year operational life.
In the same session, the Council of Ministers passed a Resolution establishing the General Financing Terms for the equity component of state-owned Empresa Nacional de Hidrocarbonetos, E.P. (ENH) in the project. The financing will be contracted by ENH Rovuma Área 4 Investments FZCO as borrower, involving ENH Rovuma Área 4, S.A., ENH Coral Norte, SU, S.A., and concessionaires ENI, KOGAS, and ADNOC.
A Resolution was also approved authorizing the incorporation of ENH Coral Norte, SU, S.A., along with the acquisition of its entire share capital by ENH Rovuma Área 4, S.A. The creation of this entity will enable ring-fenced financial and accounting management of ENH’s equity stake in the project, ensuring proper risk segregation.
Together, the three instruments establish the necessary framework to structure the financing for the Coral North FLNG Project—located in Offshore Area 4 of the Rovuma Basin—creating optimal conditions to fund project execution and ENH’s participation, while reinforcing financial segregation, traceability, and transparency in managing assets, revenues, costs, obligations, and economic rights tied to the development.
According to the Chairman of the Board of Directors of the National Petroleum Institute (INP), Eng. Nazário Bangalane, “the approval of these instruments represents a decisive milestone for the financial structuring and realization of the Coral North FLNG Project, consolidating the Rovuma Basin’s role as a strategic supplier of natural gas to both domestic and international markets.”
As the Petroleum Regulatory Authority, the INP will continue to oversee project execution within its legal mandate, ensuring strict compliance with applicable technical, legal, environmental, and regulatory requirements across all petroleum operations, while executing regulatory oversight and promoting the sustainable valuation of Mozambique’s petroleum resources.
Media Contacts: +258 21248300; +258 839511000 | INP Headquarters: Rua dos Desportistas, nº 259, Maputo | comunicacao@inp.gov.mz
