Mozambique has approved a long-term concession giving a group of major state-owned enterprises the mandate to develop and run new natural gas infrastructure at the Port of Beira and the Inhassoro area. The 30-year agreement involves the national oil company ENH, ports and rail operator CFM, power utility EDM, and Cahora Bassa Hydroelectric, working together through a government-backed special-purpose vehicle.

The project covers a wide range of assets, including an LNG import terminal, storage facilities and the Rompco pipeline — the key line that carries gas from Mozambique into South Africa. Rompco is jointly owned by the Mozambican and South African governments, with Sasol holding the remaining minority stake.

According to the National Petroleum Regulator, the expansion will rely on a floating storage and regasification unit positioned off Beira and Inhambane and linked directly to the pipeline network. Government officials say the plan is intended to create a unified system that can receive LNG from multiple developments in the Rovuma Basin, where TotalEnergies and Exxon Mobil are advancing their own projects after years of delays caused by insecurity in the north.

Authorities expect the new infrastructure to boost industrial activity and improve domestic gas supply, ensuring that a portion of future production stays within the local market. A spokesperson for Sasol described the concession as a critical step toward unlocking the full economic value of the country’s sizeable offshore reserves.

The approval comes as Mozambique continues efforts to stabilise its energy sector and attract investment back to the northern gas region, where an Islamist insurgency has repeatedly disrupted progress on major LNG plants.