Gas
Mozambique and South Africa target January LNG terminal pact
Pipeline operator Rompco expects to finalise an agreement by January for a new liquefied natural gas terminal to sustain regional fuel supplies.
Key points
- Rompco and Empresa Nacional de Hidrocarbonetos signed a memorandum of understanding for the project.
- The $450 million development features a floating storage and regasification unit near Inhassoro.
- Commissioning of the new infrastructure is scheduled to begin from 2030.
What happened
The company responsible for the pipeline carrying South Africa's primary gas supply from Mozambique anticipates finalising a formal contract for a liquefied natural gas terminal early next year. Rigzone reported that Mlandzeni Boyce, chief executive officer of the pipeline firm Rompco, stated an agreement could be reached by January following a preliminary memorandum of understanding signed with Mozambique state-owned entity Empresa Nacional de Hidrocarbonetos.
This $450 million initiative aims to offset declining output from onshore fields currently feeding the 865-kilometre pipeline. The infrastructure serves industrial operations run by Sasol Limited, while South Africa also intends to expand gas utilisation for power generation and other applications. Plans involve deploying a floating storage and regasification unit off the southern coast of Mozambique near Inhassoro, alongside a connection linking to the primary pipeline network.
Project timeline
Commissioning activities are projected to commence by 2030. To bridge potential shortages before the terminal becomes operational, Sasol has indicated that gas derived from coal at its Secunda facilities could serve as an interim supply source, necessitating swift progression from developers.
Boyce noted that gas for the terminal will originate from domestic allocations tied to northern coastal ventures operated by firms such as TotalEnergies SE. This arrangement is expected to deliver fuel to South African consumers at competitive rates relative to global market pricing. The venture remains distinct from a separate regasification proposal being pursued near the Mozambican capital.
Why it matters
Regional energy security depends heavily on cross-border infrastructure, particularly as traditional fields face depletion. For industrial consumers in South Africa, securing reliable gas imports is critical for maintaining manufacturing and power generation capacity. Meanwhile, Mozambique continues to leverage its substantial hydrocarbon resources to drive economic development, with fuel exports forming a significant portion of merchandise trade according to World Bank figures. Energy investors and policymakers across the continent will monitor how regional cooperation models influence project delivery and gas pricing stability over the coming decade.
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.
