Mozambique’s Council of Ministers has approved a decree awarding a concession for the construction and operation of infrastructure for receiving, storing, regasifying and transporting natural gas in the Port of Beira and Inhassoro.
The concession is granted to a Specific Object Entity formed by the National Hydrocarbon Company, E.P (ENH, E.P) together with other State Business Sector companies, including Mozambique’s Ports and Railways (CFM), Mozambique’s Electricity (EDM), Cahora Bassa Hydroelectric (HCB) and additional technical and financial partners to be selected by the Government.
The entity receives exclusive rights to finance, build, import and operate a Liquefied Natural Gas terminal and the Mozambique–South Africa pipeline (ROMPCO).
The project is based on a floating storage and regasification unit anchored in Beira and Inhambane, linked to the pipeline.
The goal is to ensure infrastructure for LNG transport from projects under development in the Rovuma Basin and to support domestic industrial activity through gas allocations to the local market.
The 30-year contract, counted from approval of the development plan, includes requirements for local content, insurance, performance guarantees and a demobilisation fund intended to cover end-of-project rehabilitation of infrastructure.
At the same session, the Government adopted a resolution for the recovery of the /Atum liquefied natural gas project in Area 1 of the offshore Rovuma Basin. The decision mandates an audit of costs incurred during the force majeure period. The audit is intended to underpin an addendum to the project’s development plan and to support closer Government oversight of technical, economic, security and social-responsibility aspects.
