Mozambique ensures technical support for terminal in Inhassoro

O mozambican project to build a liquefied natural gas floating terminal (LNG) in Inhassoro, alternative to the decline of Pande and Temane reserves, will have technical support guaranteed by Sasol and ROMCO, according to agreements already signed.

With these understandings, formalized in the margins of the Africa Gas & LNG Summit conference, which ends today in Maputo, the state-owned National Hydrocarbon Company (ENH) unlocks the technical and operational studies necessary to enable the Floating Storage and Regasification Unit (FSRU) in the northern province of Inhambane.

The infrastructure should receive liquefied natural gas from the megaprojects of the Rovuma basin in Cabo Delgado, converting it to the gaseous state and injecting it into the regional network, compensating for the progressive break in the Pande and Temane fields - exploited by Sasol -, which for over two decades supply the south of Mozambique and the industrial market of South Africa.

In order to accelerate the development phase, Sasol will advise on the development of the project's core studies, including the feasibility study, the Environmental and Social Impact Study (EIAS) and the detailed engineering project (EDF).

According to ENH’s Director of New Business, Rijcard Manuel, Sasol’s involvement — the main operator in Inhambane and one of the largest potential gas buyers in the region — enables the terminal’s technical specifications to be combined with concrete market and outlet opportunities.

In turn, the Republic of Mozambique Pipeline Company (ROPCO), which operates the 865-kilometre cross-border pipeline between Temane and Secunda (South Africa), will make available its technical and operational acquis to prepare for the interconnection between the future floating platform and existing regional conduct.

“ This infrastructure is crucial for the distribution and use of gas in the country and in the region,” said ENH’s chairman, Rudêncio Morais, quoted in a statement by the Mozambican state oil company, while ROMPCO’s executive director, Mlandzeni Boyce, stressed the cooperation of more than two decades between the two companies.

The advance of this alternative responds to the warning launched in May by Mozambican President Daniel Chapo, who classified the reduction of Pande and Temane’s reserves as an “inconquerable reality” and demanded “structural solutions” and “capacity to anticipate” to safeguard the energy stability of southern Africa by 2030.

To mitigate this impact, the Government assigned to ENH, in August this year, the concession to deploy the floating terminal in Inhassoro and related reception and transport infrastructure in Porto da Beira, in the center of the country, creating conditions to integrate the national energy network and transform Mozambique into a regional distribution hub.

The concession contract includes the right of construction and operation of a new pipeline system in Inhassoro, ensuring the physical connection in Temane to the pipeline operated by ROMPCO — a public-private partnership held at 40% by ENH, through the Mozambican Gas pipeline Company (CMG), at 40% by the South African State iGas and at 20% by Sasol.

The financial structure, development and installation of this platform are in charge of Mozambique’s Integrated Natural Gas Logistics Services (SLIGM), a company formed in April this year through a shareholder agreement and joint development between ENH and three other public companies: Mozambique Electricity (EDM), Mozambique’s Ports and Railways (CFM) and Cahora Bassa Hydroelectric (HCB).

While northern Mozambique concentrates three megaprojects approved for the exploitation of the gas reserves in the Rovuma basin — ranked among the largest in the world —, interconnection through Inhassoro and Beira seeks to ensure that part of this production supplies the national industry and customers along the Southern African Development Community (SADC) corridor.

Sasol expects the extraction in Pande and Temane to end in 2030, although it admits investments to extend the activity until 2031, and the production licence is valid until 2034.