Mozambique is in negotiations with energy company Sasol and pipeline company ROMPCO to invest in a new gas project worth $250 million in the coastal waters of the country. This project is designed to supply more gas for South Africa.
Project Details
Mozambique plans to establish floating storage and regasification units (FSRUs) for this project in the coastal city of Inhambane and the port of Beira. The country's goal is to become an "energy hub" for the region. Rodolfo Mário, CEO and President of Mozambique's National Oil and Gas Company, Empresa Nacional de Hidrocarbonetos (ENH), stated in an interview that this project will help provide the necessary infrastructure for the transportation of natural gas.
Mozambique's Gas Outlook
South Africa currently receives gas from onshore gas fields in Mozambique operated by Sasol. However, the resources from these fields will be depleted in the coming years. Mozambique has vast offshore gas reserves that are being discovered and developed by international companies such as ExxonMobil, TotalEnergies, and Eni.
Mário stated, "We want to have our infrastructure ready by 2030 or 2031, alongside Mozambique's LNG projects, Rovuma LNG and Coral North." These projects are led by Total, Exxon, and Eni, respectively. The state-owned ENH is part of the contracts awarded to Mozambique last year, granting the largest state companies a 30-year concession to construct and operate the infrastructure related to the receipt, regasification, storage, and transportation of natural gas.
By the end of 2025, the government of Mozambique announced that it had approved a decree to grant the concession for the construction and operation of natural gas infrastructure in the port of Beira and the smaller site of Inhambane. The FSRU stationed in Beira and Inhambane is designed to ensure the necessary infrastructure for transporting LNG from various ongoing projects in the Rovuma basin and will also help ensure the industrial sustainability of the country through the share of gas allocated to the domestic market.
Read more: NeuVentus Begins Development of Natural Gas Storage Project in Texas
