Mozambique is seeking deeper energy cooperation with South Africa to accelerate the development of its natural gas resources, strengthen regional energy security and attract investment across the gas value chain. The two countries have identified opportunities to convert Mozambique’s expanding gas reserves into electricity for industrial and domestic consumption, creating commercial opportunities that extend beyond gas extraction and exports. According to SAnews and Reuters, the countries have discussed working together on new gas discoveries and signed a memorandum of understanding on energy cooperation during their bilateral engagements in 2025. South Africa already imports more than 1,000 megawatts of electricity from Mozambique’s Cahora Bassa hydroelectric scheme, while its industrial companies also consume energy supplied into Mozambique.
A key opportunity lies in infrastructure capable of connecting Mozambique’s gas resources with regional markets. In November 2025, Mozambique approved a 30-year concession for state-linked companies to develop liquefied natural gas facilities, storage infrastructure and the Mozambique-South Africa pipeline, known as ROMPCO. The proposed facilities at Beira and Inhassoro are intended to support the transportation and processing of gas, while increasing supplies available for Mozambique’s domestic market. ROMPCO is jointly owned by the Mozambican and South African governments, which each hold 40 per cent, and Sasol, which holds the remaining 20 per cent. Mozambique’s National Petroleum Institute said the infrastructure would help connect gas developments in the Rovuma Basin with wider industrial and energy opportunities.
The investment opportunity comes as Mozambique advances several major gas developments, including the Coral North floating liquefied natural gas project, which reached a final investment decision in October 2025 with an estimated investment of $7.2 billion and planned production capacity of 3.55 million tonnes annually. The country is also working to revive its larger Mozambique LNG project and advance ExxonMobil’s Rovuma LNG development, although security concerns in Cabo Delgado remain an important risk for investors. For South African businesses, potential opportunities include gas processing, pipelines, power generation, storage and industrial applications. Turning these prospects into bankable projects will depend on financing, infrastructure delivery, regulatory certainty and sustained security, as both countries seek to translate regional energy cooperation into industrial growth and more reliable energy supplies.
