TechnipFMC Partners with Eni on Coral North FLNG Project

TechnipFMC plc FTI, a Houston, TX-based oil and gas equipment and services company, has awarded a significant Engineering, Procurement, Construction and Installation (“EPCI”) contract by Eni S.p.A. E for the Coral North development, marking another milestone in the offshore oil and gas industry. This project, located offshore Mozambique in ultra-deep waters, represents a key milestone in the region’s expanding energy sector. With a contract value estimated between $250 million and $500 million, TechnipFMC’s role in Coral North further sets its leadership in subsea and FLNG technologies.

Strategic Importance of the Coral North FLNG Project

The Coral North FLNG project is a continuation of the work already undertaken in Mozambique by TechnipFMC, which played a pivotal role in the success of the Coral South FLNG. Located approximately 2,000 meters beneath the sea surface, the Coral North field holds substantial reserves of natural gas, which are crucial to meeting the global demand for cleaner energy. This project will mark the second FLNG development offshore Mozambique, highlighting the region’s growing importance in the LNG market.

The project is an important part of the broader efforts to unlock Africa's natural gas potential. The Coral South development, which set records as the world’s first FLNG in ultradeep waters, laid the groundwork for this next phase. TechnipFMC’s expertise in the design, engineering and execution of subsea systems ensures that Coral North will meet the highest industry standards for safety, efficiency and environmental sustainability.

TechnipFMC’s Role and Expertise in FLNG Projects

TechnipFMC’s experience with floating liquefied natural gas systems is unparalleled. The company’s involvement in the Coral South FLNG project has given it invaluable insights into the unique challenges of ultra-deepwater FLNG operations. This experience will be instrumental in ensuring the timely and cost-effective delivery of the Coral North project.

For Coral North, TechnipFMC will be responsible for manufacturing and installing flexible flowlines and risers, which are integral to transporting natural gas from the subsea wells to the floating production unit. Additionally, the company will oversee the installation of subsea manifolds and umbilicals, which control the flow of energy and fluids throughout the subsea infrastructure.

These critical components play a vital role in the operation of the FLNG unit, enabling the safe and efficient extraction and liquefaction of natural gas. TechnipFMC’s ability to provide integrated solutions, combining engineering, procurement65 and installation, ensures that the project will benefit from a seamless execution approach.

TechnipFMC’s Commitment to Sustainability in Subsea Engineering

TechnipFMC has long been at the forefront of sustainable subsea technologies. In the case of Coral North, the company’s design and engineering teams will incorporate environmentally responsible practices at every stage of the project. The development will adhere to stringent international standards for environmental protection and minimize its carbon footprint throughout the construction and operational phases.

With global attention focused on the energy transition and the need for more sustainable practices, TechnipFMC’s involvement in offshore LNG projects, such as Coral North, is a key part of its broader strategy to contribute to the responsible development of natural resources. By deploying innovative technologies and methodologies, the company ensures that Coral North will be an example of modern engineering excellence and sustainability in subsea energy.

Eni’s Consortium Partnership and Collaborative Efforts

Eni S.p.A., the Italian multinational oil and gas company, has been a vital partner in the development of Mozambique’s offshore gas resources. The Coral North project marks another step forward in Eni’s efforts to unlock the full potential of the Rovuma Basin. By working closely with TechnipFMC and other consortium partners, Eni is positioning itself as a leader in the FLNG sector and in the broader energy industry.

The collaboration between TechnipFMC and Eni for the Coral North project is a testament to the strength of strategic partnerships in achieving complex, high-value projects. Both companies have demonstrated their ability to execute large-scale developments in challenging offshore environments and the Coral North FLNG project is no exception.

Future of Floating LNG and Mozambique’s Energy Landscape

The Coral North FLNG development is just one part of Mozambique’s broader energy ambitions. As one of the world’s fastest-growing natural gas reserves, the country has attracted significant investment in its offshore projects. FLNG technology plays a central role in unlocking the potential of remote offshore fields that would otherwise be difficult and costly to develop using traditional onshore facilities.

As more countries turn to FLNG solutions to meet growing energy demand, the technology will continue to evolve. TechnipFMC’s ongoing work in Mozambique places it at the forefront of this technological revolution, poised to support the global energy transition while maximizing the potential of offshore natural gas reserves.

Conclusion: TechnipFMC’s Role in Shaping the Future of Offshore LNG Projects

TechnipFMC’s award of the Coral North FLNG contract is a clear indication of its ongoing leadership in the subsea and floating LNG sectors. With its proven track record in ultra-deepwater projects and a commitment to sustainability and innovation, TechnipFMC is poised to play a critical role in the continued development of Mozambique’s offshore resources.

The Coral North project is expected to deliver significant economic benefits to the region while contributing to the global energy mix. As the world increasingly turns to natural gas as a cleaner alternative to coal and oil, projects like Coral North are crucial in ensuring energy security while minimizing environmental impacts.

FTI's Zacks Rank & Key Picks

Currently, FTI and E have a Zacks Rank #3 (Hold) each.

Investors interested in the energy sector might look at some better-ranked stocks like USA Compression Partners USAC, which sports a Zacks Rank #1 (Strong Buy), and Oceaneering International OII carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research