Technip Energies (EPA: TE), a French engineering and technology company and one of the world's leading contractors for LNG infrastructure projects, has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract by Mozambique Rovuma Venture for the Coral Norte floating liquefied natural gas (FLNG) project offshore Mozambique.

The contract, secured in partnership with Japan's JGC Holdings (TSE: 1963) and South Korea's Samsung Heavy Industries (KRX: 010140), is classified by Technip Energies as a major award, representing revenue of more than €1bn ($1.15bn).

The latest award brings together all contracts secured by Technip Energies for the Coral Norte development, including previously announced agreements related to the project.

Coral Norte will be developed by Mozambique Rovuma Venture, a consortium led by Italian energy major Eni (BIT: ENI; NYSE: E) alongside state-owned China National Petroleum Corporation (CNPC), Mozambique's Empresa Nacional de Hidrocarbonetos (ENH), Abu Dhabi-based XRG, the international investment arm of ADNOC, and South Korea's Korea Gas Corporation (KOGAS) (KRX: 036460).

The project is designed to produce approximately 3.6mn tonnes per annum (mtpa) of LNG, equivalent to roughly 5bn cubic metres (bcm) of natural gas annually. Once operational, Coral Norte will increase the Coral hub's total LNG production capacity to approximately 7mtpa when combined with the existing Coral Sul FLNG facility.

Coral Norte is based on the design of Coral Sul FLNG, Mozambique's first offshore LNG development, which began exports in 2022 from the Area 4 block in the Rovuma Basin. The replication strategy is intended to reduce execution risks, shorten development timelines and improve project economics through a standardised development model.

“By leveraging our ‘design one, build many’ approach, we are demonstrating how a standardised model can accelerate large-scale offshore project delivery. This approach enables faster deployment of new LNG capacity, contributing to energy security and diversification,” said Arnaud Pieton, chief executive officer of Technip Energies.

The award represents another milestone in the development of Mozambique's vast offshore gas resources, estimated at around 180 trillion cubic feet (tcf), equivalent to approximately 5.1 trillion cubic metres (tcm). Most of the reserves are located in the Rovuma Basin, one of the world's largest natural gas discoveries of recent decades.

Coral Norte is one of three major LNG developments planned in Mozambique, alongside TotalEnergies' (EPA: TTE; NYSE: TTE) Mozambique LNG project and Exxon Mobil's (NYSE: XOM) Rovuma LNG project. Together, the projects have the potential to transform Mozambique into one of the world's leading LNG exporters and generate tens of billions of dollars in export revenues over coming decades.

Mozambique's LNG sector is attracting renewed investment momentum after years of delays caused by the insurgency in Cabo Delgado province. Security conditions have improved since the peak of the conflict, allowing several delayed energy projects to resume planning, financing and development activities.

While consortium partners have not disclosed an updated capital cost estimate for Coral Norte, the project is expected to rank among the largest offshore energy investments currently under development in Africa. Mozambique views LNG exports as a cornerstone of its long-term economic development strategy, with the projects expected to generate substantial fiscal revenues, foreign-exchange earnings and local procurement opportunities.

The project also comes as European and Asian buyers continue seeking long-term LNG supply diversification following disruptions to global gas markets triggered by Russia's invasion of Ukraine. Additional LNG volumes from Mozambique are expected to strengthen global energy security and provide new supply options for import-dependent markets.