Genser Gas pipeline
Mozambique’s state-owned oil company, Empresa Nacional de Hidrocarbonetos (ENH), is in talks with potential investors, including South Africa’s Sasol and pipeline operator ROMPCO, over a proposed natural gas project as the country seeks to become a regional energy hub.
The project comes as Mozambique seeks to secure future gas supplies for South Africa, which currently receives gas from Sasol’s onshore Pande and Temane fields. Those fields are expected to be depleted within a few years, while Mozambique holds significant offshore gas resources in the Rovuma Basin.
The proposed project, estimated to cost about $250 million, would involve the development of floating storage and regasification units (FSRUs) at Inhassoro and the Port of Beira.
A new 140-kilometre pipeline would connect the facilities to the larger ROMPCO pipeline, a major gas transportation route linking Mozambique to South Africa’s Secunda industrial complex.
Rudencio Morais, ENH’s chief executive officer and chairman, told Reuters that the company aims to have the infrastructure ready by 2030 or 2031, alongside the development of Mozambique LNG, Rovuma LNG and Coral North.
“We want our infrastructure by 2030 or 2031, in step with Mozambique LNG, Rovuma LNG and Coral North,” Morais said.
ENH is part of a group of state-owned companies that received an exclusive 30-year concession last year to build and operate natural gas infrastructure in Mozambique.
The country is also attracting major international energy companies, including TotalEnergies, ExxonMobil and Eni, which are developing large liquefied natural gas (LNG) projects.
Although much of the gas from these developments is intended for international markets, petroleum laws that took effect in June require at least 25% of oil and gas production, including LNG, to be allocated to the domestic market.
Morais said Mozambique was positioning itself to supply energy to a region grappling with electricity shortages.
“Mozambique is going to become what we call the power hub,” he said.
Sasol said it would be premature to speculate on the nature or scale of any potential investment as it sought alternative gas supplies. ROMPCO did not immediately respond to a request for comment.
Reuters
