Mozambique's National Hydrocarbons Company (ENH) and the Republic of Mozambique Pipeline Company (ROMPCO) have signed a memorandum of understanding to advance plans for a liquefied natural gas terminal at Inhassoro, on the country's central coast. The signing marks a formal commitment by the two state-owned entities to collaborate on developing the facility, though an MoU at this stage does not constitute a contract award or financial investment decision.
Inhassoro sits in Inhambane Province, in a region that has historically served as a hub for Mozambique's onshore and near-shore gas infrastructure. The proposed LNG terminal would represent a significant addition to the country's gas monetisation architecture, complementing the large-scale LNG developments already under way in the northern Cabo Delgado province. By involving ROMPCO — the pipeline operator jointly owned by Mozambique, South Africa, and iGas — the project signals a potential integration of pipeline and liquefaction infrastructure to bring gas from producing areas to export-ready facilities in the central region.
Mozambique has emerged as one of sub-Saharan Africa's most consequential gas provinces, with multi-trillion cubic feet of offshore reserves underpinning projects led by TotalEnergies and Eni, among others. A central LNG terminal at Inhassoro could serve smaller or stranded gas fields that cannot justify the capital cost of connection to the northern mega-projects. It may also support domestic gas supply and regional energy security objectives aligned with the Southern African Development Community's energy agenda.
The MoU initiates a study and development phase. ENH and ROMPCO are expected to conduct feasibility assessments, secure financing partnerships, and define the technical scope of the terminal before any construction commitment can be made. No project value, capacity specifications, timeline, or engineering contractor has been disclosed at this stage. The parties have not indicated whether the project will progress under a build-own-operate model, a public-private partnership, or another commercial structure.
For the broader LNG infrastructure sector, the Inhassoro initiative adds to Mozambique's pipeline of potential gas monetisation projects at a time when global LNG demand remains robust. Progress will depend on the pace of feasibility work, the availability of upstream gas supply commitments to underpin terminal investment, and the ability of ENH and ROMPCO to attract international financing and technical partners. Market observers will watch for a formal feasibility study mandate or a request for qualifications as the next concrete milestone.