A New Link for a Changing Gas Market
Mozambique is looking to strengthen its position in Southern Africa's energy market with a proposed $250 million natural gas infrastructure project designed to connect new supply facilities to the pipeline network serving South Africa. The country's state-owned oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH), is in discussions with potential investors, including South African energy company Sasol and pipeline operator Republic of Mozambique Pipeline Company (ROMPCO), as it works towards establishing Mozambique as a regional energy hub. The proposal centres on the coastal locations of Beira and Inhassoro, where floating storage and regasification facilities would be developed and connected to the existing network through a new 140-kilometre pipeline.
The proposed infrastructure comes at a significant point for the regional gas market. Mozambique currently supplies South Africa with natural gas from the onshore Pande and Temane fields, operated by Sasol, but these reserves are expected to decline within the coming years. Their eventual depletion could create supply challenges for South African industrial consumers that rely on gas for manufacturing and other energy-intensive operations. By connecting new facilities to ROMPCO's existing network, ENH hopes to create an additional route through which gas can reach the South African market, potentially reducing dependence on production from these ageing fields.
Connecting New Infrastructure to Existing Networks
A central feature of the proposal is the planned use of floating storage and regasification units, or FSRUs, at Inhassoro and the Port of Beira. These facilities receive liquefied natural gas (LNG), store it and convert it back into gaseous form for transportation through pipelines. The proposed 140-kilometre connection would link this infrastructure to ROMPCO's network, which transports gas from Mozambique to Sasol's industrial complex in Secunda, South Africa. Using an established transportation corridor could provide a route for additional gas supplies without requiring the development of an entirely separate cross-border pipeline system. However, the project's eventual supply volumes and commercial arrangements have not yet been confirmed.
The proposal also reflects Mozambique's broader ambitions for its natural gas resources. Offshore, the Rovuma Basin hosts major LNG developments involving companies including TotalEnergies, ExxonMobil and Eni. ENH wants the proposed infrastructure to align with the development timelines of Mozambique LNG, Rovuma LNG and Coral North, targeting completion around 2030 or 2031. Yet, much of the gas from these developments is intended for international export markets, creating a challenge for a country seeking to expand its domestic energy supply while also serving regional customers. Petroleum legislation introduced in June 2026 requires at least 25% of oil and gas production, including LNG, to be allocated to the domestic market. This requirement adds another dimension to the infrastructure plans, linking the expansion of gas transportation and processing capacity with Mozambique's efforts to make more of its natural resources available locally.
Investment Still to Be Secured
Despite the project's potential regional significance, it remains at the investment-discussion stage. ENH is still engaging prospective partners, and no final financing commitments have been announced. Sasol has said it would be premature to comment on the nature or scale of any potential investment, while ROMPCO had not responded to Reuters' request for comment at the time of reporting. The proposed 2030–2031 completion window therefore remains a target rather than a confirmed delivery date.
For Mozambique and South Africa, the project's significance extends beyond the construction of another pipeline. It raises a wider question about how Southern Africa will maintain access to natural gas as existing fields decline and new offshore resources enter development. If the project secures the necessary investment and commercial agreements, the combination of floating regasification facilities and a connection to ROMPCO could provide another route for bringing gas into the regional network. For now, its progress will depend on whether the proposed partners can turn discussions into firm commitments and establish a commercially viable supply arrangement.
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