Mozambique grants 30-year LNG concession to state firms
Mozambique has awarded a 30-year concession to its top state-owned companies to develop and operate liquefied natural gas (LNG) facilities at the Port of Beira and the smaller Inhassoro site, the government announced Monday.
The move aims to unlock the country’s vast gas reserves despite delays caused by an Islamist-linked insurgency in northern Mozambique, which has affected projects like TotalEnergies’ LNG plant, News.Az reports, citing Reuters.
The concession will be managed by a special-purpose vehicle formed by the national oil company ENH, ports and railways operator CFM, electricity provider EDM, and hydroelectric company Cahora Bassa (HCB), alongside technical and financial partners selected by the government. The deal covers an LNG terminal, storage facilities, and the 865-kilometre Rompco pipeline linking Mozambique’s gas fields to South Africa. Rompco is a public-private partnership, with Mozambique and South Africa each holding 40% and Sasol owning the remaining 20%. The project also includes a floating storage and regasification unit (FSRU) anchored in Beira and Inhambane, connected to the pipeline.
The concession complements ongoing LNG projects by TotalEnergies and Exxon Mobil in the Rovuma Basin. It is designed to transport LNG from multiple projects efficiently, support industrialization by ensuring part of the gas enters the domestic market, and provide the “logistical backbone” needed to turn Rovuma gas potential into tangible economic value, according to a Sasol spokesperson.
Mozambique’s government said the concession will help strengthen the country’s energy infrastructure and boost its position as a key player in Southern Africa’s LNG sector.
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