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Mozambique grants 30 year concessions to state-owned firms for LNG installations and pipeline

The government announced on Monday that Mozambique had granted a 30-year license to its largest state-owned firms, including the national oil company ENH, for the construction and operation of natural gas facilities in the Port of Beira as well as the smaller Inhassoro location.

The efforts of Southern Africa to develop its oil reserves and gas have been hindered by an ongoing insurgency linked to Islamists in the northern part of the country. This has caused TotalEnergies LNG plant delays, despite improvements in security.

The concession will managed by a special purpose vehicle consisting of ENH, the ports and rails company CFM and Cahora Bassa Hydroelectric, as well as technical and financial partners chosen by government.

The deal includes a terminal for liquefied gas, storage facilities and a pipeline of 865 kilometres (537.5 miles) that connects Mozambique’s gas fields with South Africa. Rompco is an 80/20 public-private partnership consisting of the Mozambican, South African and Sasol governments. Each government holds 40%.

The National Petroleum Regulator's website stated that the project was based on a floating-storage and regasification-unit (FSRU), which is anchored at Beira and Inhambane, and connected to a pipeline.

TotalEnergies, Exxon Mobil and Exxon Mobil are pushing ahead with their LNG projects.

INP stated that the new infrastructure will support the transportation and distribution of LNG from the Rovuma basin, where TotalEnergies, Exxon Mobil, are all active. It will also boost industrialisation, by ensuring a portion of the gas is sold on the domestic market.

A Sasol spokesperson said: "This was the logistical support that was lacking to turn the potential of Rovuma into real value for our country." (Reporting and editing by Louise Heavens, Wendell Roelf)

(source: Reuters)