Mozambique's ENH and South Africa's Sasol Sign Agreement for LNG Terminal Study

en.Wedoany.com Reported - On November 11, Mozambique's National Hydrocarbon Company (ENH) and South African energy and chemical company Sasol signed a memorandum of understanding during the 2026 Africa Gas and LNG Summit held in Maputo. The two parties will collaborate on studying the construction of a floating liquefied natural gas storage and regasification terminal in Inhassoro, Mozambique. Sasol will provide technical support and participate in the project feasibility study, environmental and social impact assessment, and front-end engineering design. The results will be used to determine the technical conditions and investment feasibility of the project.

The proposed terminal is located in the Inhassoro area of Mozambique and is planned to adopt a floating storage and regasification unit (FSRU) to receive liquefied natural gas from the northern Rovuma Basin, convert it back to gaseous natural gas through the onboard regasification system, and then feed it into the regional gas transmission network. The project aims to provide an alternative gas source for Mozambique's domestic market and industrial users in South Africa, reducing dependence on continued supply from southern onshore gas fields.

Sasol's work this time is mainly concentrated in the technical study phase, including assessing terminal equipment configuration, LNG receiving and storage conditions, regasification processes, environmental impacts, and engineering construction plans. Ricard Manuel, ENH's Head of New Business, stated that Sasol's experience in natural gas infrastructure construction and operation will be used to match the technical specifications of the future terminal with market demand. The two parties have not yet disclosed the terminal's designed processing capacity, storage tank scale, equipment suppliers, or engineering contract value.

On November 12, ENH signed another memorandum of understanding with Mozambique Pipeline Company (ROMPCO) to study the connection conditions between the Inhassoro regasification facility and the existing gas transmission system. ROMPCO will provide technical and operational data to assess the feasibility of connecting the new facility to the 865-kilometer Temane–Secunda natural gas pipeline in South Africa, and to study the technical, commercial, and financial conditions of the related connection works. The pipeline is one of the main cross-border channels for transporting natural gas from Mozambique to South Africa.

ENH's previously proposed overall infrastructure plan includes configuring floating storage and regasification units at Inhassoro and the Port of Beira in Sofala Province respectively, and building approximately 140 kilometers of natural gas pipelines to connect the related facilities to the ROMPCO gas transmission network. The plan was previously estimated at approximately USD 250 million in investment, with a target commissioning time of 2030 to 2031.

Project development is related to changes in production from the Pande and Temane gas fields in southern Mozambique. The two gas fields have long been responsible for supplying natural gas to some industrial users in Mozambique and South Africa, and Sasol is evaluating additional investment to extend the production cycle. The liquefied natural gas project in the northern Rovuma Basin can provide a new gas source, which will be shipped to the southern receiving terminal and then transported to industrial markets through the existing pipeline network.