A natural gas pipeline that will connect the massive natural gas discoveries in Northern Mozambique

On 23 April 2013, Gigajoule International (Pty) Ltd, and Empresa Nacional de Hidrocarbonetos (ENH), the Mozambican state owned oil and gas company, signed a Memorandum of Understanding (MoU). This MoU sets out the basis for the joint study and if feasible the construction of the 2100km pipeline from Cabo Delgado to Maputo and regional markets.

Gigajoule and ENH’s relationship started in 2003 when they formed the Matola Gas Company (MGC) and developed the gas transmission and distribution network from Ressano Garcia to Matola. This network, now in operation for 9 years, is supplying gas to more than 30 industries, gas vehicles and now also power stations. ENH recently started with the construction of a gas pipelines to domestic customers in Maputo.

Gigajoule earlier concluded pre-feasibility studies, evaluating the economic and technical feasibility of the North to South gas pipeline and the supply of liquefied natural gas (LNG) to the major markets in Mozambique. Based on this studies Gigajoule and ENH decided to proceed with the feasibility study of the pipeline.

A large diameter pipeline connecting the Northern gas discoveries with the energy needs of the South can have a dramatic impact on the economy of Mozambique and its neighbours. Adequate volumes of clean natural gas, delivered to critical areas, can alleviate major present and future power shortages in the region with minimum impact on the environment. Mozambican communities along the pipeline route will benefit by having gas available for public and agricultural transport and power generation. The cost of the pipeline project was estimated at around $3 billion dollars. An estimate $5million would be spent to do the detailed feasibility studies. The study should be ready for presentation to the Mozambican Government by mid-2014.

This venture can form the backbone for a new industrial revolution in a country which is in desperate need of social upliftment and to combat poverty, utilising its own natural resources. At the same time it can support Southern Africa with much needed clean energy