Gas
Mozambique courts South Africa for new gas project
Mozambique is seeking investment from South Africa for a new natural gas project as part of its strategy to emerge as a regional energy hub.
Key points
- ENH is in talks with potential investors including South Africa's ROMPCO for a new gas initiative.
- The 250 million US dollar project involves floating storage and regasification units at Inhassoro and Beira.
- A 140 kilometre pipeline will connect the facilities to the existing ROMPCO pipeline supplying South Africa.
What happened
According to CNBC Africa reporting based on Reuters interviews, Mozambique's state-owned oil company ENH is holding discussions with potential investors regarding a new natural gas project. The initiative targets cooperation with South Africa's Sasol Sand pipeline company ROMPCO to secure future fuel supplies.
The proposed infrastructure project is estimated to cost approximately 250 million US dollars. It centres on the coastal towns of Beira and Inhassoro, featuring floating storage and regasification units. A 140 kilometre pipeline would link these installations to the wider ROMPCO network, which supplies gas to South Africa's Secunda industrial complex from Mozambican fields.
ENH holds an exclusive 30-year concession awarded last year alongside other state entities to develop natural gas infrastructure. Chief Executive and Chairman Rudencio Morais stated that the state aims to have the new facilities operational by 2030 or 2031, aligning with major liquefied natural gas developments in the Rovuma Basin by international energy firms.
What comes next
While Mozambique seeks to position itself as a regional power hub to address chronic energy shortages in Southern Africa, regulatory frameworks are evolving. Recent petroleum legislation enacted in June mandates that at least 25 percent of oil and gas production, including LNG, must be reserved for the domestic market.
South African counterpart Sasol indicated that discussing potential investments remains premature while the company pursues alternative gas sources to replace output from the Pande and Temane fields, which face depletion within the decade. ROMPCO has not yet issued a response regarding the talks.
Why it matters
Regional energy integration remains a critical pathway for addressing infrastructure deficits across the continent. According to World Bank figures from 2024, electricity access stands at 36.9 percent in Mozambique and 90.2 percent in South Africa, highlighting the stark disparities in grid connectivity between neighbouring trading partners.
For energy investors and policymakers, Mozambique's push to monetise its offshore gas reserves demonstrates how cross-border pipeline networks and domestic market obligations can intersect. As fuel exports account for 54.2 percent of Mozambique's merchandise exports according to 2025 World Bank data, compared to 8.2 percent for South Africa, balancing international export commitments with regional energy security will dictate the success of Southern Africa's gas master plan.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
15.3% of electricity in Mozambique came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
