Floating liquefied natural gas (FLNG) projects are a “game changer” for Africa’s gas sector with potential to unlock previously inaccessible, vast offshore gas reserves.

This is according to industry leaders speaking at African Energy Week 2024 currently underway in Cape Town. Supported by strategic financing, technological innovation and favourable regulatory frameworks, these projects enable African nations to tap into new energy resources, bolster economic growth and strengthen their roles in the global gas market, they said.

One of the most ambitious projects is Nigeria’s first FLNG plant – a US$5 billion facility led by UTM Offshore in partnership with the Nigerian National Petroleum Company. Designed to capture and process 2,8 million tons of flared gas from the Niger Delta each year, the project aims to serve local energy needs and export markets. As the front-end engineering design phase has been completed, the project is now moving into the engineering, procurement and construction (EPC) phase with a final investment decision expected next year, according to Julius Rone, CEO of UTM Offshore. “Securing multi-billion-dollar financing remains challenging but, with the right EPC partnerships, Africa’s resources can be tapped effectively.”

Mozambique’s Coral Sul FLNG project, developed by Eni, has positioned the country as a key player in the global gas market. Following Coral Sul’s success, Eni is advancing Coral Norte – another modular FLNG project expected to expedite Mozambique’s gas output. “Coral Sul has unlocked access to Mozambique’s offshore gas estimated at about 100 trillion cubic feet. This project has proven the viability of ultra-deepwater FLNG with over five million tons of LNG exported in 2024,” said Ivan Codognotto, Technical Director at Eni Rovuma Basin. FLNG is flexible in reaching offshore resources and it is able to bypass some security risks tied to onshore facilities, he added.

The significance of having the right resources, a supportive government framework and strong technical expertise to advance Africa’s FLNG sector was noted across the panel, including a reliable partnership ecosystem. “In Cameroon, it was crucial to have a quality asset, a well-structured contract and a supportive framework – this is the foundation for successful projects,” Petersen said.

Nigeria’s abundant offshore gas reserves, often flared or reinjected, present an untapped opportunity for development if regulatory support is in place, Rone said. “The Nigerian government has implemented incentives under the Petroleum Industry Act to encourage offshore gas projects. For Africa, gas is a critical transition resource, offering a practical step forward in energy development. A stable regulatory environment with efficient decision-making is essential.”