In a landmark move to confront a deepening energy crisis triggered by drought and break open its vast natural gas wealth for domestic and regional use, Mozambique has established a powerful new state-backed entity bringing together four of its most strategic public companies under a single gas supply mandate.
The National Hydrocarbons Company (ENH), Electricity of Mozambique (EDM), Ports and Railways of Mozambique (CFM), and the Cahora Bassa Hydroelectric Company (HCB) have signed an agreement to form the Integrated Natural Gas Logistics Services of Mozambique (SLIGM). By consolidating technical, financial, and operational capabilities, the partnership represents a coordinated national push to unlock Mozambique’s gas value chain.
The urgency is stark: hydropower output — Mozambique’s primary electricity source — fell by 25 per cent in 2026 due to drought, exposing the country’s dangerous dependence on a single energy source. The new entity is expected to increase gas supply across the country to enhance baseload generation and reduce vulnerability to climate-related disruptions. Government policy mandates that up to 25 per cent of natural gas production be allocated to the domestic market.
FSRU to Connect Rovuma Basin Gas to the Nation
At the core of SLIGM’s mandate is the development of a Floating Storage and Regasification Unit (FSRU), which will enable the import, storage, and regasification of LNG for distribution across Mozambique. The infrastructure is designed to connect gas resources from the Rovuma Basin — one of Africa’s richest gas provinces — to key demand centres, linking northern Inhambane with the Port of Beira for regional exports. The government approved the project in November 2025.
Beyond power, the initiative is expected to accelerate clean cooking adoption, with national targets aiming to raise clean cooking access from 17 per cent currently to approximately 54 per cent by 2030, while electricity access is targeted to grow from 60.1 per cent in 2024 to universal coverage by the same year.
Source: prospect-intel.com