Is floating LNG the new frontier of African energy exports?

How is floating LNG redefining Africa’s role in global gas exports in 2025?

The sail away of Eni’s Nguya floating liquefied natural gas (FLNG) unit from Shanghai in August 2025 has spotlighted a growing trend in African energy: modular LNG exports from floating platforms rather than traditional onshore liquefaction terminals. Together with the smaller Tango FLNG, the Republic of Congo will soon deliver 3 million tonnes per annum (MTPA) of LNG capacity — a significant achievement for a country that had no liquefaction capability just two years ago.

This fast-paced expansion underscores how FLNG is emerging as the new frontier for African energy exports. Unlike mega-projects in Qatar or the U.S. that take years to develop and cost tens of billions, African FLNG projects are being executed in compressed timelines with smaller upfront investments. Analysts believe this model could unlock stranded gas reserves across the continent and reposition Africa in the global LNG trade map.

Why are African producers choosing floating LNG over traditional onshore mega-projects?

African nations have long struggled to monetize gas due to infrastructure gaps, high capital requirements, and political or security risks that complicate long lead-time projects. Onshore LNG plants demand extensive pipelines, processing trains, and port facilities, making them vulnerable to delays and cost overruns.

Floating LNG offers a leaner alternative. Units like Tango in Congo and Coral South in Mozambique are pre-fabricated in Asian shipyards, then deployed offshore fields. This modularity reduces construction risk, avoids extensive land acquisition, and accelerates time-to-market. The Nguya FLNG, built in just 33 months, is a record in LNG delivery pace.

Institutional investors have noted that FLNG’s portability and scalability lower exposure to country risk while still allowing access to global LNG markets. For producers like Congo or Mauritania-Senegal, FLNG is less about scale and more about viability — it allows them to enter the LNG exporters’ club without waiting a decade.

How do projects like Congo’s Nguya and Mozambique’s Coral South illustrate the FLNG model in action?

Congo’s Phase 1 Tango FLNG, a 0.6 MTPA unit, exported its first cargo in February 2024, just months after completion. With Nguya adding 2.4 MTPA by end-2025, Congo LNG will reach 3 MTPA capacity, supplying Europe at a time when diversification away from Russian pipeline gas remains critical.

In Mozambique, Eni’s Coral South FLNG began production in late 2022, producing 3.4 MTPA offshore the Rovuma Basin. Despite security issues in northern Mozambique delaying TotalEnergies’ onshore Mozambique LNG project, Coral South showed how offshore FLNG can sidestep some land-based risks while still generating revenue for the host country.

These case studies illustrate why African governments are increasingly turning to floating solutions. By tapping fields like Nenè, Litchendjili, or Coral without waiting for multi-billion-dollar onshore trains, producers generate earlier fiscal benefits and strengthen their geopolitical leverage.

Can floating LNG meaningfully compete with Qatar and U.S. onshore giants in the global market?

Even with multiple African FLNG projects online, the scale remains modest. Congo’s 3 MTPA and Mozambique’s 3.4 MTPA combined are a fraction of Qatar’s planned 126 MTPA capacity by 2030 or U.S. Gulf Coast expansions exceeding 150 MTPA. For institutional buyers, Africa will not displace the majors — but it can provide flexible, incremental supply that helps balance global trade flows.

Analysts stress that FLNG’s importance lies not in raw volume but in speed and diversification. Europe, for instance, prizes any incremental cargoes that reduce dependence on pipeline routes. Asian buyers, meanwhile, see African FLNG as a hedge against Middle Eastern chokepoints.

Thus, while African FLNG cannot yet rival mega-exporters, it fills a strategic niche: small but fast LNG increments that matter at the margins of supply-demand balances.

What are the investor and institutional sentiment trends around African FLNG projects?

Market sentiment toward African LNG remains cautiously optimistic. Investors see upside in the combination of smaller capital requirements and quicker cash flows, which reduces risk compared to stalled onshore mega-projects. Eni’s execution of Congo LNG in under three years has been widely praised as proof of concept.

Eni S.p.A. (BIT: ENI) has also benefited in stock sentiment from demonstrating delivery discipline amid volatile markets. Institutional flows into energy equities in Europe have highlighted LNG growth stories as more resilient than refining or upstream oil exposure.

For host nations, revenue from LNG exports provides diversification away from crude oil dependence. However, investors remain mindful of political risks, local security conditions, and the need for regulatory stability to ensure long-term offtake agreements.

How does floating LNG fit into Africa’s broader role in the energy transition and gas-to-power development?

Africa sits on vast gas resources, yet over half a billion people on the continent lack access to electricity. LNG projects that export to Europe also often tie into domestic gas-to-power initiatives. In Congo, for example, Eni supplies gas to the Congo Power Plant, which generates 70% of the nation’s electricity.

FLNG is therefore not just an export tool but also a bridge for local development. By reducing flaring, capturing associated gas, and integrating gas-to-power, companies like Eni frame these projects as both commercially viable and socially impactful.

From a transition standpoint, LNG remains a fossil fuel, but one with the lowest carbon intensity compared to coal or oil. FLNG developments emphasize zero-flaring technology and industrial reuse, aligning with investor demands for lower-carbon gas pathways.

What does the future look like for floating LNG across Africa’s frontier markets?

Analysts expect more FLNG proposals in West Africa, particularly in Mauritania-Senegal where BP and Kosmos are advancing Greater Tortue Ahmeyim, and in Nigeria where stranded offshore fields could benefit from modular solutions. Smaller nations like Namibia, which has made offshore discoveries, could also consider FLNG as a pathway to monetization.

The broader question is whether Africa will scale FLNG beyond niche increments. With energy security driving demand in Europe and Asia, and investor appetite for quicker-cycle gas plays, floating LNG could become the default model for new African entrants. However, limitations in capacity and financing mean that FLNG will likely remain complementary to, rather than a substitute for, onshore LNG giants.

What are the broader implications of Africa’s FLNG momentum for global LNG trade?

For global LNG buyers, Africa’s FLNG projects offer diversification, optionality, and reduced dependence on geopolitically sensitive corridors. For African producers, they provide a new revenue stream, fiscal stability, and a seat at the energy diplomacy table.

Institutional sentiment suggests that while Africa will not transform LNG volumes globally, it will play an outsized role in shaping supply diversification strategies. With Europe committed to cutting Russian gas imports and Asia balancing Middle Eastern exposure, African FLNG represents an agile tool in the energy security toolkit.

For Eni and peers like BP, TotalEnergies, and Shell, FLNG projects align commercial interests with host government development agendas, making them attractive not only as export plays but also as corporate ESG narratives.