#WRL. Talks are underway between the governments of South Africa and Mozambique on building a new pipeline to bring gas to South Africa from the huge gas fields in the Rovuma Basis offshore northern Mozambique, South Africa’s new energy minister Mmamoloko Kubayi said May 19.
“Work with the Mozambicans has started. Technical teams have been engaging. There are concerns about regulations. We will make sure we comply but also ensure it is in the public interest,” she noted.
Eni, Anadarko and their co-venturers want to monetise their vast Rovuma basin offshore gas resources as LNG in the 2020s, once a current global LNG glut has eased. They have been wary about tying the resource into local markets until full-scale LNG projects are up, running, and earning their keep.
Eni has discovered more than 85 trillion ft3 and Anadarko more than 75 trillion ft3 of gas resources in the Rovuma offshore northern Mozambique, and have agreed on a joint site where they could build onshore LNG trains. Separately, a proposed floating LNG project by Eni is pending a final investment decision.
South Africa’s Sasol has enough pipeline capacity to export from its onshore southern Mozambique production. Kubayi would not say what overlap, if any, there might be between a new pipe and Sasol’s existing one. Meanwhile onshore exploration in northern Mozambique has been modest.
In early 2016 a proposal for a Chinese-sponsored 2,600km pipe costing $6bn from Mozambique’s far north to South Africa’s industrial heartlands made little progress.