The exclusive rights were granted for building, financing, importing and operating the LNG terminal, storage units and the ROMPCO pipeline. Credit: Evgenii Bakhchev/Shutterstock.com.
Mozambique’s Government has granted a 30-year concession for the construction and operation of natural gas infrastructure at the Port of Beira and Inhassoro, awarding the rights to a consortium of state-owned companies.
Mozambique’s Council of Ministers passed a decree granting the concession to a “specific object entity” formed by National Hydrocarbon Company, ports and railways operator CFM, electricity provider EDM and Cahora Bassa Hydroelectric, along with technical and financial partners chosen by the government.
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The exclusive rights were granted for building, financing, importing and operating the liquefied natural gas (LNG) terminal, storage units, and the 865km ROMPCO pipeline that connects Mozambique’s gas fields to South Africa.
ROMPCO is operated as a public-private collaboration, with the Mozambican and South African governments each holding a 40% share, and Sasol owning the remaining 20%, according to Reuters.
On its website, the National Petroleum Regulator of Mozambique said: “The project is based on a floating storage and regasification unit (FSRU) anchored in Beira and Inhambane and connected to the pipeline.”
The government’s approval of the concession comes as TotalEnergies and ExxonMobil continue to advance their own LNG projects in the country, the news agency reported.
The new infrastructure is intended to facilitate the movement of LNG from various developments in the Rovuma Basin, a region where both TotalEnergies and ExxonMobil are active.
The new infrastructure is also expected to support industrialisation by ensuring that part of the gas supply is directed to Mozambique’s domestic market.
The US Export-Import Bank has approved a $5bn (€4.61bn) loan to support the Mozambique LNG project spearheaded by TotalEnergies, marking a step towards resuming the $20bn venture.
The project is owned by TotalEnergies with a 26.5% stake, while Oil India, ONGC Videsh and Bharat PetroResources collectively hold a 30% share.
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