Eni’s second floating LNG (Liquefied Natural Gas) production project in Mozambique, Coral North, has “potential” for a final investment decision in 2024, according to the head of Technip Energies, Arnaud Pieton.

In November 2022, the 3.4 mtpa Coral South FLNG unit in Mozambique shipped its first cargo of LNG, placing the country among the top LNG producers.

The TJS consortium, made up of Technip Energies, JGC and Samsung Heavy, built the unit for Eni, making it the first floating LNG facility to be deployed in the deep waters of the African continent.

Italy’s Eni discovered the Coral field in May 2012 and operates Area 4 together with its partners ExxonMobil, CNPC, GALP, Kogas and ENH.

The partners are now working on the second FLNG project off Mozambique, Coral North.

Pieton told analysts during the Technip Energies 2023 results conference call that Coral Norte would be a replica of Coral Sul, which has been a “great success for us and Eni. We follow it closely and are in close contact with Eni”.

Pieton also said that if Eni decides to accept the IDF in 2024, it will probably be at the end of the year. “Work for us is progressing towards initial engineering work and preparing the groundwork so that we can start work at the time of the IDF,” he said.

In 2023, Technip Energies secured 10.8 billion dollars (689.2 billion meticais) in orders. In May last year, Technip Energies and Consolidated Contractors Company won QatarEnergy’s NFS LNG contract worth around ten billion dollars to build two “mega” LNG trains with a capacity of 8 mtpa each.

Technip and Chiyoda previously won the EPC contract for QatarEnergy’s North Field East project, which includes the construction of four trains with a capacity of 8 mtpa at the Ras Laffan complex.

The French multinational TotalEnergies, the concessionaire for Area 1 of the Rovuma basin in Cabo Delgado, announced an investment of just over US$ 4 million in paving a road linking its facility to the village of Senga, over a stretch of about three kilometers. The initiative, part of the company’s social responsibility, also includes the construction of a bridge damaged by the recent heavy rains in the region.

The infrastructure will also include drainage ditches. The groundbreaking took place last Monday in Palma, in the presence of the governor of Cabo Delgado, Valige Tauabo, and the CEO of TotalEnergies, Maxime Rabilloud.

In addition to the investment in the road, Rabilloud delivered drugs to the District Hospital for the treatment of conjunctivitis, a disease that affects the region. TotalEnergies also financed the construction of a building for the District Infrastructure Services in Mocímboa da Praia, inaugurated on Monday afternoon, as part of Cabo Delgado’s reconstruction program.

In his speech, Rabilloud pointed out that although the company’s operations are suspended, TotalEnergies continues to support Cabo Delgado’s development programs, currently employing around six thousand nationals in agricultural and other projects.

In the road rehabilitation project, Rabilloud said that 100 more locals will have employment opportunities. For his part, the governor of Cabo Delgado praised TotalEnergies’ initiative, pointing out that the company has supported the local population, even in difficult times.

With regard to natural gas exploration operations, Patrick Pouyanné, CEO of TotalEnergies, recently stated that the company is close to resuming work. Pouyanné mentioned that they are mobilizing the contractors again and that the last step is to refinance the project, which was suspended due to the insurgency in the region.

Mozambique has three approved development projects to exploit the natural gas reserves in the Rovuma basin, which are among the largest in the world. However, the insurgency in the region has intensified, creating uncertainty about the future of these projects.

The most recent figures from the Mozambican government reveal a strong dependence of the country’s Gross Domestic Product (GDP) on the extractive industry. In 2022, this dependence reached 10.55%, and in the first two quarters of 2023, the figures rose to 32.58% and 42.71%, respectively.

While the extractive industry and the mining sector are seeing significant growth, other sectors are facing challenges. The construction sector fell by 10.31%, the manufacturing industry slowed down by 7.77% and fisheries fell by 9.16%.

Real GDP grew by 4.17% in the first quarter of 2023 and by 4.67% in the second quarter of the same year. The government predicts GDP growth of close to 5.5% in 2024, driven by the extractive industry and other sectors such as tourism and investments in road and air mobility.

The continued dependence of the Mozambican economy on the extractive industry and the mining sector highlights the importance of diversifying the country’s economic base. However, solid growth is expected, driven by the resumption of development of the onshore modules of the Golfinho Tuna natural gas project and other investments.

Despite challenges in some sectors, Mozambique is on the road to robust economic growth, supported by the extractive industry and investments in various sectors. The government is committed to promoting sustainable growth and economic diversification to ensure a prosperous future for the country.