What You Need to Know
Three state-owned companies in Mozambique have signed an agreement to establish the Integrated Natural Gas Logistics Services of Mozambique. This initiative aims to improve gas supply to domestic and regional markets, featuring a Floating Storage and Regasification Unit in Inhambane and infrastructure in Beira, enhancing energy sovereignty and economic conditions.
Africa-Press – Mozambique. Three Mozambican publicly-owned companies have signed a shareholders’ agreement to establish a company to be called the Integrated Natural Gas Logistics Services of Mozambique (SLIGM), aimed at strengthening the supply of gas to the domestic and regional markets.
The companies are the National Hydrocarbons Company (ENH); the electricity company, EDM; the port and rail company, CFM; and Hidroelectrica de Cahora Bassa (HCB), the company which operates the Cahora Bassa dam, on the Zambezi River in the central Mozambican province of Tete.
These companies also signed a Joint Development Agreement (JDA), establishing the basis for the development, financing, and implementation of the project.
According to a statement from the companies, the initiative envisages the installation of a Floating Storage and Regasification Unit (FSRU) for liquefied natural gas, to be anchored in the southern province of Inhambane, with complementary infrastructure in the central Port of Beira.
“With the creation of the company, the four public companies will combine their technical, financial, and operational capabilities, ensuring the viability and sustainability of the project. The partnership grants the entities the exclusive right to finance, build, import, and operate the liquefied natural gas terminal”, reads the note.
It is believed that the initiative will contribute to the diversification of energy sources, reduce dependence on imports, and promote the monetization of domestic gas from the Rovuma Basin and other sedimentary basins in the country.
“The project represents an important step in consolidating energy sovereignty and valuing natural resources. The initiative demonstrates the commitment of national institutions to the implementation of structuring projects, with an impact on industrialization and the strengthening of the energy matrix. The project could generate positive effects on the economy, contributing to the improvement of living conditions”, reads the document.
The creation of the company stems from the approval by the Council of Ministers (Cabinet), last November, of the decree granting the concession for the construction and operation of an infrastructure for the reception, storage, regasification, and transport of natural gas in the Port of Beira and at Inhassoro, in Inhambane.
The establishment of the Integrated Natural Gas Logistics Services of Mozambique marks a significant development in the country’s energy sector. With the discovery of vast natural gas reserves in the Rovuma Basin, Mozambique has sought to leverage these resources for economic growth and energy independence. The collaboration among ENH, CFM, HCB, and EDM reflects a strategic approach to enhance infrastructure and operational capabilities in the energy sector, aiming to reduce reliance on imported energy sources and promote local resource utilization.
