A planned 450-million-dollar liquefied natural gas terminal off Mozambique’s southern coastline aims to secure South Africa’s diminishing fuel supplies by January under an agreement reported by Engineering News.
Rompco, a gas pipeline company transporting South Africa’s sole supply of the fuel from Mozambique, expects to conclude an agreement by January for the new terminal, its chief executive officer stated. A memorandum of understanding signed on Thursday with Empresa Nacional de Hidrocarbonetos precedes the formal agreement, Mlandzeni Boyce told Engineering News in an interview.
Empresa Nacional de Hidrocarbonetos did not immediately respond to a request for comment. Adding a terminal to import liquefied natural gas will help solve diminishing supply from existing onshore fields that feed into the 865-kilometer Rompco pipeline, which was originally built to supply Sasol’s chemical and fuel-making operations. South Africa also maintains plans to increase its use of gas to generate power alongside other industrial applications.
The 450-million-dollar project includes a floating storage and regasification unit to be anchored off Mozambique’s southern coastline near Inhassoro, alongside a connection to the main Rompco pipe, Boyce told Engineering News after the signing. The company intends to own the spur line as well as a stake in the floating storage and regasification unit.
While commissioning is expected from 2030, Sasol has said that methane-rich gas produced from coal at its Secunda operations could provide a bridge until the liquefied natural gas supply becomes available. That requirement demands that floating storage and regasification unit developers move quickly.
“We aim to conclude the joint-development agreement and sign it by January,” Boyce told Engineering News. “Once that assessment is finalized, discussions shift to exploring potential roles for involvement.”
Sasol signed a separate memorandum of understanding with Empresa Nacional de Hidrocarbonetos over the floating storage and regasification unit development earlier in the week. The Johannesburg-based company owns a 20 percent operator stake in Rompco, with Mozambican and South African state-owned companies each holding 40 percent.
The gas will originate from Mozambique’s domestic gas allocation from projects developed by companies including TotalEnergies SE on its northern coast, Boyce explained. That structure ensures the fuel will arrive at customers in South Africa at a reasonable price below global liquefied natural gas market rates.
Different developers are pursuing a separate regasification terminal near the Mozambican capital that will also supply the Rompco pipeline, keeping this initiative entirely distinct.
| Project Element | Details |
|---|---|
| Estimated Project Cost | $450-million |
| Pipeline Length | 865 km |
| Commissioning Target | 2030 |
| Sasol Rompco Stake | 20% |
On Thursday, Boyce told Engineering News, “Our focus now is trying to develop the feasibility study.”
