The government of Mozambique is seeking investors from South Africa to develop a $250 million gas infrastructure project. The initiative aims to improve regional gas supplies and support industrial growth.
First, the state-owned hydrocarbons company ENH is negotiating with potential partners, including South African energy group Sasol and pipeline operator ROMPCO. The project will connect gas facilities in Inhassoro and the port of Beira to the regional transport network. It includes floating gas storage and regasification units, alongside a 140-kilometre pipeline. Operations are expected to begin in 2030 or 2031.
Meanwhile, South Africa relies heavily on gas from Mozambique to supply parts of its industrial sector. However, production from the Pande and Temane fields is expected to decline in the coming years. Therefore, the new infrastructure could help secure future supplies. Sasol has said it is too early to confirm its potential investment, while ROMPCO has not commented.
Furthermore, Mozambique holds significant offshore gas resources in the Rovuma Basin. Major companies, including TotalEnergies, ExxonMobil and Eni, are developing liquefied natural gas projects there. New domestic supply rules also require at least 25% of oil and gas production, including LNG, to be reserved for the local market.
Finally, the project forms part of Mozambique’s broader ambition to become a regional energy hub. ENH has received a 30-year exclusive concession to develop and operate gas infrastructure. However, the project’s timeline depends on securing investors and completing the planned facilities.
If completed, the initiative could strengthen energy cooperation between Mozambique and South Africa while supporting future industrial and electricity needs.
