Mozambique proposes $250 million LNG solution for South Africa
Mozambique's state energy company seeks investment for floating units to supply South Africa's gas needs.
Empresa Nacional de Hidrocarbonetos (ENH), Mozambique's state energy firm, is proposing a $250 million project to supply gas to South Africa. The plan involves two floating storage and regasification units (FSRUs), one near Beira and another at Inhassoro, to process LNG from the Rovuma Basin. This initiative aims to stabilize gas deliveries to South Africa's Secunda industrial centre as its domestic Pande and Temane gas fields near depletion.
ENH CEO and Chairman Rudêncio Morais pitched the project, seeking investment from chemicals giant Sasol and pipeline operator ROMPCO. The FSRUs would connect to a new 140-km coastal pipeline to feed regasified LNG into the ROMPCO network. This infrastructure is envisioned to be in place by 2030 or 2031, aligning with major LNG projects in the Rovuma Basin.
The project aims to address South Africa's growing demand and prevent supply shortages. Depleting gas supplies from the Pande and Temane fields have raised concerns for third-party users, particularly as Sasol prioritizes feedstock for its chemical facilities. New rules requiring Mozambique's LNG industry to supply 25% of production domestically could also support these deliveries.
Why it mattersSouth Africa's Secunda industrial centre faces potential gas shortages as its domestic fields deplete, impacting its chemical facilities.