• Mozambique grants 30-year LNG concession to state-owned company consortium
  
• Project includes LNG terminal in Beira, pipeline to South Africa, and energy sites
  
• New entity to manage operations; Sasol says setup ensures network continuity

Mozambique has formalized the award of a 30-year concession for the development and operation of a set of liquefied natural gas (LNG) infrastructure. The decision was confirmed on Monday, according to international press reports.

The license was granted to a consortium of state-owned companies comprising Empresa Nacional de Hidrocarbonetos (ENH), Caminhos de Ferro de Moçambique (CFM), Electricidade de Moçambique (EDM), and Hidroeléctrica de Cahora Bassa (HCB).

According to details in the government's official bulletin, the concession covers three distinct components. The first is an LNG terminal planned for the port of Beira, including a floating storage and regasification unit, reception facilities, and storage capacity.

The second component comprises energy infrastructure in Inhassoro, in Inhambane province. The third concerns the ROMPCO pipeline, which is approximately 865 kilometers long and connects Mozambique to South Africa.

The government plans to create a specific entity to manage the entire concession area. This structure will bring together the already designated state-owned companies. The government will then select technical and financial partners to support the development and operation of the infrastructure.

The measure aims to consolidate, under this entity, all operations necessary for the treatment and transport of LNG, from its reception to its delivery to the markets served. South African public company Sasol, which is involved in the project, said this organization provides overall coherence by facilitating continuous flows within the network.

The Gas for Africa initiative estimates recoverable gas from the Area 1 and Area 4 blocks of the Rovuma basin at more than 100 trillion cubic feet, a volume that supports the major projects located in the north, where insecurity has blocked the process of monetizing these resources.

Abdel-Latif Boureima