On 1st June 2017, Italian oil major Eni officially signed off on its Coral South Liquefied Natural Gas (FLNG) project in Mozambique, almost 6 years after the initial discovery of extensive gas reserves positioned Mozambique as potentially one of the world’s leading natural gas producers. Not only is the Coral South FLNG project expected to significantly contribute to Mozambique’s economic development, but it is also proof that there are investors that still have confidence in a country that is struggling through an ongoing financial crisis.
Furthermore, not only have Eni’s discoveries drastically improved Mozambique’s long-term economic outlook, they may also have proved to be a turning point in bilateral relations, as both countries appear keen to capitalise on these lucrative deposits.
- Mozambique’s nascent gas industry has the potential to be a major driver of long-term growth, and has served to attract investment interest across several other industries.
- Italian energy company Eni’s multiple giant gas discoveries off the coast of Mozambique has managed to cement Italy’s interest in the African country, and both economic and commercial relations between the two countries have strengthened over the last decade. Notably, in 2016, Italy became Mozambique’s top destination in Europe in terms of exports.
- Interestingly, it appears that Eni’s increasing presence in Mozambique has opened a door for Italian companies wishing to invest in other sectors of the economy, such as agriculture, infrastructure and industrial production.