According to a statement by Mozambique’s National Petroleum Regulator (INP), Mozambique approved the decree granting the concession for the construction and operation of infrastructure for the reception, storage, regasification, and transport of natural gas in the Port of Beira and Inhassoro.
The concession will be managed through a special-purpose vehicle formed by ENH and other state-owned companies such as Mozambique’s Ports and Railways (CFM), Mozambique’s Electricity (EDM), Cahora Bassa Hydroelectric (HCB), and partners with technical and financial capacity to be selected by the government.
INP said the decision gives the partners the exclusive right to finance, build, import, and operate an LNG terminal and the Mozambique-South Africa pipeline (Rompco), an 865 km pipeline that transports natural gas from Mozambique’s Pande and Temane fields to markets in both countries.
Rompco is a joint venture between the Mozambican and South African governments, each holding 40 percent, and Sasol, which owns the remaining 20 percent.
INP said the project is based on a floating storage and regasification unit (FSRU) anchored in Beira and Inhambane and connected to the pipeline mentioned above.
“The same is intended to ensure that the country has the necessary infrastructure for the transport of LNG from the different projects being implemented in the Rovuma Basin, as well as to ensure the sustainability of industrialisation of the country through the share of gas devoted to the domestic market,” INP said.
INP said the contract, with a period of 30 years after approval of the development plan, incorporates local content requirements, insurance, performance assurance, and the creation of a demobilisation fund to ensure the rehabilitation of infrastructure at the end of the project.
The company did not provide further details regarding the FSRU-based facilities.
South Africa
Rompco said last year that regasified LNG is a viable alternative for South African industrial customers to mitigate ongoing loadshedding and cut energy costs.
The JV said it was exploring the possibility of connecting LNG from Mozambique’s Matola terminal being developed by Beluluane Gas Company (BGC), a joint venture between Gigajoule, a South African energy company, and France’s TotalEnergies.
The plans included installing an FSRU in Matola that can receive LNG shipments from various sources and deliver regasified gas to a gas-to-power plant to be built at the Beluluane Industrial Complex and, in addition, supply gas to the South African market via the Rompco pipeline.
South Africa, which currently lacks LNG import terminals, has been exploring potential LNG imports for some time due to expected gas shortages.
Earlier this year, South Africa’s Transnet National Ports Authority signed a 25-year terminal operator agreement with a joint venture consisting of Dutch terminal operator Vopak and its consortium partner Transnet Pipelines for South Africa’s first LNG import terminal.
Vopak and Transnet Pipelines plan to develop the project in two phases.
According to Vopak, the first phase includes a floating storage unit (FSU) of of 135,000-174,000 cbm capacity and an onshore regasification system with an indicative capacity of 2 mtpa, or about 400 mmscfd, and optional truck loading facilities.
Rovuma Basin
Besides the approvals for LNG import facilities, the Mozambican government adopted the resolution on the recovery of the LNG project Dolphin/Atum, implemented in Area 1 offshore Rovuma Basin, determining the performance and validation of an audit of the costs incurred during the force majeure period, according to INP.
“The audit will serve as a basis for the adoption of the addendum to the project’s development plan and reinforces the commitment of the government to closely monitor the implementation of the project in technical, economic, security, and social responsibility matters,” INP said.
With these approvals, Mozambique advances on two fronts simultaneously.
“On the one hand, the creation of a hub of natural gas in Beira and Inhambane, which diversifies and strengthens national supply, and on the other hand, the relaunch of the country’s largest land LNG project, which is fundamental for the harmonisation of regional and global natural gas markets and for the strengthening of Mozambique’s position and its international projection,” INP said.
France’s TotalEnergies and its partners in the giant Mozambique LNG project recently lifted force majeure on the 12.8 million tonnes per annum (mtpa) project.
The partners declared force majeure on the project in April 2021 and withdrew all personnel from the site due to new attacks.
Mozambique LNG, with a price tag of $20.5 billion, includes the development of offshore gas fields in Mozambique’s Area 1 and a liquefaction plant at the Afungi complex.
In addition to Mozambique LNG, US energy giant ExxonMobil and its partners in the Rovuma LNG project in Mozambique also lifted force majeure on their project.
ExxonMobil expects a final investment decision in 2026 and first LNG production in 2030.
