Gas
Mozambique proposes infrastructure to ease South African gas crunch
Empresa Nacional de Hidrocarbonetos has pitched a $250 million floating infrastructure project to redirect domestic liquefied natural gas to South Africa.
Key points
- ENH proposed two FSRUs and a coastal pipeline to supply gas via the ROMPCO network.
- The initiative leverages a new law mandating that 25% of local gas production serve the domestic market.
- South African industrial users face potential supply shortages as local fields near depletion.
What happened
Mozambique's state-owned energy enterprise, Empresa Nacional de Hidrocarbonetos, is seeking financial backing from Sasol and pipeline operator ROMPCO for a $250 million infrastructure scheme. The project aims to transport natural gas from major deepwater developments in the Rovuma Basin to markets in South Africa.
ENH leadership presented the proposal during African Energy Week in Cape Town, outlining a timeline to align the new facilities with upcoming production by 2030 or 2031. The design incorporates two floating storage and regasification units situated at the Port of Beira and Inhassoro, alongside a 140-kilometre coastal pipeline connecting into the ROMPCO transmission grid.
The initiative responds to declining output from the Pande and Temane gas fields, which have supplied regional networks for years. With those reserves approaching depletion, industrial consumers in South Africa faced steep price hikes under previous import proposals relying on international spot markets. Mozambique's parliament recently passed legislation requiring a portion of local hydrocarbon production to serve domestic needs, creating an avenue to supply regasified liquefied natural gas at more competitive rates.
What comes next
Sasol stated that evaluating alternative feedstocks remains ongoing, noting that any commentary on potential investments is premature. Meanwhile, regional energy authorities continue to advance programs aimed at expanding gas-to-power capacity to mitigate reliance on aging coal-fired electricity generation infrastructure.
Why it matters
Cross-border energy cooperation remains critical for regional industrial stability as traditional supply basins decline across Southern Africa. South Africa maintains an electricity access rate of 90.2 percent alongside per capita consumption of 3,308.2 kilowatt-hours, according to 2024 World Bank figures, depending heavily on reliable fuel inputs to sustain industrial output. For Mozambique, where fuel exports accounted for 54.2 percent of merchandise exports in 2025, maximizing domestic allocation policies offers a pathway to monetize major offshore discoveries while supporting neighboring economies.
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.
