The Council of Ministers approved, during the 39th Ordinary Session, the Decree granting the concession for the Construction and Operation of Infrastructures for the reception, storage, regasification and transport of natural gas in the Port of Beira and Inhassoro.
The decision confers on the concessionaire, a Specific Object Entity (EOE), constituted by the National Hydrocarbon Company, E.P (ENH, E.P) and other companies in the State Business Sector (SEE), such as Mozambique’s Ports and Railways (CFM), Mozambique’s Electricity (EDM), Cahora Bassa Hydroelectric (HCB) and partners with technical and financial capacity to be selected by the Government, the exclusive right to finance, build, import and operate the Liquefied Natural Gas Terminal (LNG) and the Mozambique-South Africa pipeline (ROMPCO).
The project is based on a floating storage and regasification unit (FSRU) anchored in Beira and Inhambane and connected to the pipeline mentioned above. The same is intended to ensure that the country has the necessary infrastructure for the transport of LNG from the different projects being implemented in the Rovuma Basin, as well as to ensure the sustainability of industrialisation of the country through the share of gas devoted to the domestic market.
The contract, with a period of 30 years after approval of the Development Plan, incorporates local content requirements, insurance, performance assurance and the creation of a Demobilisation Fund to ensure the rehabilitation of infrastructure at the end of the project.
At the same session, the Government adopted the Resolution on the recovery of the Liquefied Natural Gas Project Dolphin/Atum, implemented in Area 1 Offshore Rovuma Basin, determining the performance and validation of an audit of the costs incurred during the Force Major period. The audit will serve as a basis for the adoption of the Addendum to the project's development plan and reinforces the commitment of the Government to closely monitor the implementation of the project in technical, economic, security and social responsibility matters.
The Chairman of the INP Board of Directors, Nazário Bangalane, welcomed the two decisions, stating that "they represent a significant advance for energy stability as well as for Mozambique's credibility as a producer and exporter of natural gas". On the concession for the Construction and Operation of Infrastructure, he stressed that the project "places that region of the country as a new logistics hub of natural gas", while on the Dolphin/Atum project reinforced that "the audit of costs and continuous monitoring ensure transparency and sound conditions for the safe recovery of the project".
With these approvals, Mozambique advances simultaneously on two fronts. On the one hand, the creation of a hub of natural gas in Beira and Inhambane, which diversifys and strengthens national supply and, on the other hand, the relaunch of the country's largest land LNG project, which is fundamental for the harmonisation of regional and global natural gas markets and for the strengthening of Mozambique's position and its international projection. For more information please contact us by: Telephone: 839511000 | email: comunicacao@inp.gov.mz | www. inp.gov.mz
