Robust transportation infrastructure for Mozambique’s gas

September 1, 2024

Rudêncio de Rodolfo Novais Morais, chairman of Companhia Moçambicana de Gasoduto (CMG), talks to The Energy Year about developing gas infrastructure for domestic and cross-border distribution and the role natural gas can play in Mozambique’s energy transition. CMG is a Mozambican state-owned entity engaged in the transportation of natural gas via pipeline.

What is CMG’s role in transporting gas from the Pande and Temane fields?
CMG has been deeply involved in the development of Mozambique’s natural gas resources. Our primary activities focus on building and managing the infrastructure needed to deliver gas across the country.
For example, the gas pipeline from Temane has five offtake points. A portion of this gas is distributed within Mozambique to meet local needs, serving over 2,600 families in the Vilanculos, Inhassoro and Govuro districts. Additionally, a dedicated line channels gas to the 11-MW “Temaninho” power station via the Central Processing Facility (CPF).
Another segment of the pipeline reaches Maputo, supplying companies such as Matola Gas Company and ENH Kogas, as well as the 40-MW Kuvaninga Energia plant in Chokwe, the 106-MW Central Térmica de Maputo, the 120-MW Gigawatt Mozambique plant and the 175-MW Central Térmica de Ressano Garcia.
Historically, Sasol in South Africa has been Mozambique’s primary gas offtaker. The Rompco pipeline – a joint venture between Mozambique and South Africa where CMG, iGas and Sasol hold interests of 40%, 40% and 20%, respectively – runs 865 kilometres from the Pande and Temane gasfields in Mozambique to Secunda in South Africa.
This pipeline is a prime example of successful collaboration between the public and private sectors in Africa. It also plays a crucial role in the energy transition, as the proceeds from gas sales can be reinvested in building upstream infrastructure and developing alternative energy sources.

How can the pipeline further Mozambique’s ambitions to become a regional energy hub?
Infrastructure is the backbone of gas development. Rompco not only facilitates domestic gas distribution but also strengthens regional trade, positioning CMG as a key enabler of gas distribution in both Mozambique and South Africa.
Industry stakeholders and government officials frequently emphasise the importance of domestic gas development, industrial sector growth and gas-based energy solutions. CMG acts as the vehicle that enables these aspirations. While upstream exploration and production might form the core business, it is our robust gas transportation network that breathes life into the country’s resources, unlocking their full potential for national development.

 

What steps is CMG taking to secure funds for pipeline investments and operations?
Through our stake in the Rompco pipeline, we can mobilise funds for project financing. If there is a commercial justification to transport gas from one point to another, we will leverage our resources to make it happen and ensure a seamless connection.
Collaboration strengthens our efforts, and we prefer to develop the initial phases of projects alongside public sector entities. Private sector involvement becomes valuable at a later stage to help distribute risks.
We believe that the public sector plays a key role in public-private partnerships, as public control enhances the capacity-building impact of infrastructure projects, which is crucial for the country. Once construction is complete, operations and maintenance contribute significantly to developing local capacities and expertise.
This philosophy guides our plans to transform Rompco. Currently, Rompco does not operate the pipeline, and CMG is advocating for Rompco to assume both management and operational functions. We’re confident that this will be achieved by 2026, facilitating technology and knowledge transfer within Mozambique.

In 2022, CMG became a majority shareholder in Rompco. What was the motivation behind this move?
Securing a majority public-sector stake in Rompco brings transparency to the operation, which is essential for building trust. Additionally, this move helps ensure efficient resource management and profitability. Controlling procurement allows us to optimise costs throughout the value chain and enables real-time production monitoring.

Can natural gas facilitate the adoption of renewable energy sources in Mozambique?
At CMG, we believe natural gas is a key driver of Mozambique’s energy transition. By supplying gas to households, we are reducing their reliance on wood for fuel and helping combat deforestation. With gas as a reliable power source, families are freed from the burden of gathering fuel, allowing them to focus on the education and development of their children.
Using the southern region as a blueprint, we can develop distribution networks across the entire country, making Mozambican gas available for various applications, from household and industrial fuel to power generation and LPG production.

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