Mozambique plans major gas infrastructure

Mozambique is advancing plans to develop new gas infrastructure valued at approximately 250 million dollars, aiming to connect coastal facilities in Inhassoro and the port of Beira to a transport network leading to South Africa.

Infrastructure includes storage and pipeline

The project, supported by the state-owned hydrocarbons company ENH, includes floating storage and regasification units at Inhassoro and Beira, as well as a 140 km pipeline to link them to the ROMPCO network. The infrastructure is intended to be operational by 2030 or 2031.

Mozambique aims to become regional energy hub

ENH's general director and chairman of the board, Rudencio Morais, stated the goal is to make Mozambique a regional energy hub. South Africa is seeking to diversify its gas supplies, with current reliance on gas from Mozambique's Pande and Temane fields, which are expected to deplete in the coming years.

New law affects gas distribution

A new petroleum law enacted in June requires at least 25% of oil and gas production, including LNG, to be reserved for the domestic market, complicating efforts to transport gas to Mozambican consumers while pursuing export opportunities.

ENH has long-term concession

ENH holds an exclusive concession for 30 years to build and operate gas infrastructure in the country. Discussions are ongoing with potential partners, including the South African group Sasol and ROMPCO, though Sasol has not yet commented on the nature or extent of a potential investment, and ROMPCO has not provided any statements.

South Africa develops regasification terminal

In parallel, South Africa's Transnet National Ports Authority signed a 25-year concession with Ukwanda LNG to develop a land-based regasification terminal at the Ngqura port, estimated at 22 billion rand (1.3 billion USD), intended as an entry point for imported LNG to the Eastern Cape. The timing of the Mozambican project's commissioning remains linked to the mobilization of investors and the realization of planned infrastructure, with the ongoing discussions not yet confirming the financial participation of Sasol or ROMPCO.