• Mozambique creates SLIGM to manage gas logistics infrastructure

• State firms partner to develop LNG storage and regasification projects

• Move aims to boost supply, leverage vast Rovuma Basin reserves

Mozambique has taken a new step to structure its natural gas sector. Authorities announced the creation of the Sociedade de Serviços Logísticos Integrados do Gás Natural de Moçambique (SLIGM), according to Club of Mozambique on April 17.

The initiative is based on a shareholders’ agreement between Empresa Nacional de Hidrocarbonetos (ENH), Caminhos de Ferro de Moçambique (CFM), Hidroeléctrica de Cahora Bassa (HCB), and Electricidade de Moçambique (EDM).

The four entities will establish an operator covering the entire gas logistics chain. SLIGM will be responsible for developing and managing infrastructure dedicated to gas operations.

Key projects include the installation of a floating storage and regasification unit (FSRU), which receives liquefied natural gas (LNG) and converts it into gas.

The aim is to strengthen supply to domestic and regional markets as Mozambique accelerates development of gas resources, mainly in the offshore Rovuma Basin.

“The project represents an important step in consolidating energy sovereignty and maximizing the value of natural resources,” the parties said, according to local media.

The project is still in its early stages. The agreement lays the legal groundwork for the company, but the required infrastructure is not yet in place.

Oversight of gas projects continues

The initiative is part of broader efforts to improve management of the country’s gas resources. Mozambique holds more than 190 trillion cubic feet of proven reserves, according to the World Bank, most of them in the Rovuma Basin.

In March, Ecofin Agency reported that Mozambique LNG had requested port and aviation services to support its operations, reflecting increased mobilization of national infrastructure as TotalEnergies prepares to restart the project in Block 1.

Authorities aim to better coordinate project development. Mozambique is targeting LNG output of around 20 million tonnes per year by 2029, up from 3.4 million tonnes currently.

Abdel-Latif Boureima