Mozambique’s state-owned oil and gas company, Empresa Nacional de Hidrocarbonetos (ENH), is pursuing a $250 million project to establish a gas pipeline that aims to enhance the nation’s position as a regional energy hub. The company is currently engaged in discussions with investors, including South Africa’s Sasol and the pipeline operator ROMPCO, to secure backing for the initiative.
The project entails the construction of a new 140-kilometer (87-mile) pipeline that will connect proposed coastal gas infrastructure to the Republic of Mozambique Pipeline Company network, which transports natural gas to South Africa’s Secunda industrial complex. Additionally, the project will feature floating storage and regasification units at Inhassoro and the Port of Beira.
Currently, Mozambique exports gas to South Africa from Sasol’s onshore Pande and Temane fields; however, those reserves are projected to run out within a few years. The new pipeline is intended to facilitate access to extensive offshore resources in the Rovuma Basin, where major companies such as TotalEnergies, ExxonMobil, and Eni are developing multibillion-dollar liquefied natural gas initiatives to meet continued demand in South Africa.
ENH is part of a state-owned consortium that received an exclusive 30-year concession last year for the construction and management of national gas facilities. Rudêncio Morais, CEO and chairman of ENH, indicated that the goal is to complete the pipeline and associated import infrastructure by 2030 or 2031, which aligns with the timelines of the Mozambique LNG, Rovuma LNG, and Coral North projects.
Although most gas from the Rovuma Basin is designated for international exports, newly enacted petroleum laws require that at least 25% of domestic oil and gas production be reserved for local and regional markets.
This pipeline initiative builds on the progress of Eni’s Coral Sul floating LNG facility, which has been operational off the Palma district since 2022. A related project, Coral Norte, is currently 70% complete and expected to begin production in 2028.
By establishing a direct pipeline connection between new regasification terminals and existing transmission lines, Mozambique aims to strengthen its supply chain, address the decline of onshore fields, and position itself as the leading gas exporter to Southern Africa.
