According to joint venture (JV) Republic of Mozambique Pipeline Investments Company (Rompco) CEO Mlandzeni Boyce, gas is a cleaner alternative to fossil fuels and a major driver of economic growth and social development in the Southern Africa region. Boyce emphasizes the significance of gas as a “transitional bridge between coal and renewable-energy sources”.
Founded as a joint venture (JV) by the governments of Mozambique and South Africa, represented by Companhia Moçambicana de Gasoduto (CMG) and integrated energy and chemical company Sasol, Rompco serves as a vital link between the latter country’s abundant gasfields and South Africa’s energy market.
The Mozambique-Secunda Pipeline (MSP), an 865 km pipeline operated by Rompco, connects the country’s gas reserves to markets and operations in Secunda, in the Mpumalanga province of South Africa.
According to Boyce, the pipeline has been “instrumental” in providing energy to both South Africa and Mozambique, particularly during load shedding and blackouts.
The pipeline supports the expanding energy demand in Southern Africa, promoting industrial expansion and job creation, with a capacity of approximately 212 petajoules (PJ) annually, which is further expanded by additional loop lines and compressor stations.
If the market grows significantly due to the absorption of gas-to-power (GtP) and overall industrial growth, Rompco, according to Boyce, would be able to install more loop lines and raise capacity to 400 PJ, staying a critical asset to drive gas volumes into the market.
Rompco now has 40 PJ to 45 PJ of spare capacity on the pipeline that runs from South Africa to Ressano Garcia in the Maputo region of Mozambique.
First-come, first-served policy applies to the market’s offering of this capacity. However, consumers must sign gas supply agreements in order to access this capacity.
Rompco is actively supporting this process by making sure that suppliers and consumers of gas have ongoing conversations. In order to establish a cost-effective and favorable environment for both new market entrants and current shippers or users with expansion plans, the corporation is also closely collaborating with authorities.
Evolution of Energy
The pipeline has played a pivotal role in the monetization of gas resources, revenue generation, and diversification of energy mixes in both nations since the MSP’s establishment in 2004.
South Africa’s gas consumption totals around 185 PJ/y, and encompasses methane-rich gas. This consumption is divided into two primary segments: 120 PJ used for synthetic fuels, and 65 PJ allocated to industrial purposes.
The industries supported by the MSP also generate over R300-billion in taxable revenue.
In alignment with the Integrated Resource Plan 2023, Boyce says Rompco aims to play a pivotal role by supplying a significant amount of gas needed for GtP and industrial applications in South Africa, using the MSP for delivery from Mozambique.
“Given the shift towards cleaner energy sources and the current power generation deficit in South Africa, we anticipate an increase in demand for gas, particularly as more power developers are likely to initiate GtP projects in the region,” he tells Engineering News.
Although Rompco anticipates the potential of its pipeline to transport green hydrogen in the future, the development of the natural gas market in the region faces several challenges such as limited infrastructure, regulatory barriers and price competitiveness.
Rompco is collaborating with key players to ensure that its assets contribute effectively to the Southern African Development Community Gas Masterplan, which aims to unify the economies of the region by guaranteeing energy security.
“As we shift towards cleaner energy sources to combat global warming and reduce carbon footprints, the expansion of the gas value chain in the region is anticipated. We are conducting studies to evaluate future expansions, as well as potential connections along the pipeline, in response to potential increases in gas demand and supply, and to address infrastructure challenges,” Boyce explains.
As most African countries are relatively small in terms of population and gross domestic product per capita, they may struggle with the high costs of establishing infrastructure for their modest domestic markets.
He suggests, therefore, that these countries share costs and benefit collectively by pooling their resources to adopt new partnerships, which, in turn, can create a framework for building stronger ties between countries and fostering economic growth.
Gold Sponsorship
As a prominent gold sponsor at the Africa Energy Indaba (AEI), Rompco is “dedicated to playing a significant role in discussions and activities that influence energy policies across Africa”.
Boyce will be a key speaker at the main conference, participating in important plenary panel sessions that focus on topics such as ‘Maximising the Value of Africa’s Natural Resources’ and addressing a potential gas crisis.
“Our active participation in the AEI underscores our commitment to enhancing the energy sector in the region. We eagerly anticipate collaborating with industry experts, government representatives and other key players to collectively tackle energy challenges and contribute to a prosperous future for our nation and the continent at large,” he concludes
