Why is Eni opting for a second FLNG unit instead of expanding onshore facilities in Mozambique?

Offshore FLNG units offer a significantly lower geopolitical and security risk profile compared to onshore terminals, which have been plagued by regional instabilities and security threats in northern Mozambique. Additionally, replicating the existing Coral Sul design allows Eni to accelerate the development timeline, reduce engineering costs, and bring gas to market much faster.

Who are the partners involved in delivering the Coral Sul 2 FLNG project?

The project is being executed by a consortium consisting of Technip Energies, JGC Corporation, and Samsung Heavy Industries. This is the same experienced consortium that successfully delivered the first Coral Sul FLNG, ensuring continuity in engineering, shipyard construction, and project management.

What does this contract mean for the global LNG supply outlook?

The addition of Coral Sul 2 will inject several million tons per annum (mtpa) of highly reliable LNG into the global market by the late 2020s. This helps diversify global gas supplies and provides European and Asian buyers with alternative long-term supply contracts, reducing dependence on traditional pipeline gas and volatile spot markets.

Offshore Energy · June 8, 2026 (Jun 8) · 1 min read

Technip Energies’ assignment on Eni’s African FLNG bringing in above €1 billion

ENI S.p.A.

Isometric technical illustration of offshore oil and gas operations with drillship and support vessel — Illustration: ENI S.p.A.

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Technip Energies has confirmed that its engineering, procurement, construction, installation, and commissioning (EPCIC) contract for Eni's Coral Sul 2 FLNG project in Mozambique is valued at over €1 billion. This development underscores the growing momentum for floating LNG solutions as operators seek faster, more flexible monetization routes for offshore gas reserves. The project replicates the successful Coral Sul FLNG design, highlighting a strategic shift toward standardized, repeatable infrastructure in deepwater gas developments.

Key Facts

Technip Energies secured a major EPCIC contract valued at over €1 billion for the Coral Sul 2 floating liquefied natural gas (FLNG) unit in Mozambique.
The project is operated by Mozambique Rovuma Venture (MRV), a joint venture led by Italian energy major Eni alongside ExxonMobil and CNPC.
The Coral Sul 2 FLNG will be deployed in the Area 4 basin offshore Mozambique, duplicating the design of the existing Coral Sul FLNG facility.
The contract scope covers the entire lifecycle of the floating facility's delivery, including engineering, procurement, construction, installation, and commissioning.
This second FLNG unit aims to significantly boost Mozambique's LNG export capacity, capitalizing on the massive gas discoveries in the Rovuma Basin.
Technip Energies is executing the project in partnership with JGC Corporation and Samsung Heavy Industries, reforming the consortium that delivered the first Coral Sul FLNG.

Background & Context

The Rovuma Basin offshore Mozambique holds some of the world's largest untapped natural gas reserves, discovered in the early 2010s. While onshore LNG projects in the region have faced severe delays and force majeure declarations due to local security challenges and insurgency in the Cabo Delgado province, offshore FLNG has emerged as a safer, highly viable alternative. The first Coral Sul FLNG began exports in late 2022, proving the technical and commercial feasibility of deepwater liquefaction in East Africa and paving the way for this second, replicating vessel.

Market Impact

This contract solidifies Technip Energies' leadership in the highly specialized global FLNG market, demonstrating that standardized 'copy-paste' designs can significantly reduce engineering timelines and costs. For Eni and its partners, the over €1 billion commitment to Coral Sul 2 signals strong investor confidence in Mozambique's offshore security and resource potential, bypassing onshore geopolitical risks. The global LNG market will benefit from a reliable, mid-term supply injection, helping to ease long-term energy security concerns in Europe and Asia as they transition away from pipeline constraints.

What to Watch

Market watchers should monitor the final investment decision (FID) timeline for the broader Area 4 joint venture, which will fully greenlight the construction phase. Key milestones to watch include the steel-cutting ceremony at Samsung Heavy Industries' shipyard in South Korea and the integration of the topside modules. Additionally, the progress of this offshore project may influence whether total onshore liquefaction plans in Mozambique resume under improved security conditions.

Frequently Asked Questions

Why is Eni opting for a second FLNG unit instead of expanding onshore facilities in Mozambique?: Offshore FLNG units offer a significantly lower geopolitical and security risk profile compared to onshore terminals, which have been plagued by regional instabilities and security threats in northern Mozambique. Additionally, replicating the existing Coral Sul design allows Eni to accelerate the development timeline, reduce engineering costs, and bring gas to market much faster.
Who are the partners involved in delivering the Coral Sul 2 FLNG project?: The project is being executed by a consortium consisting of Technip Energies, JGC Corporation, and Samsung Heavy Industries. This is the same experienced consortium that successfully delivered the first Coral Sul FLNG, ensuring continuity in engineering, shipyard construction, and project management.
What does this contract mean for the global LNG supply outlook?: The addition of Coral Sul 2 will inject several million tons per annum (mtpa) of highly reliable LNG into the global market by the late 2020s. This helps diversify global gas supplies and provides European and Asian buyers with alternative long-term supply contracts, reducing dependence on traditional pipeline gas and volatile spot markets.

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