Mozambique’s Gas: An Opportunity for South Africa?

The document examines the strategic opportunity for South Africa to leverage Mozambique's massive gas discoveries in the Rovuma Basin to diversify its energy mix and reduce its reliance on coal. It highlights the need for political and financial commitment, including the construction of an LNG terminal and the formation of strategic partnerships, to ensure South Africa does not miss the window of opportunity as Mozambique prepares for gas production by 2018.

• Major gas discoveries in Mozambique's Rovuma Basin, specifically in Cabo Delgado province, have estimated resources of possibly 100 trillion cubic feet (tcfs) from only two of five concession areas, making them among the highest discoveries globally in the last decade.
• South Africa's energy sector is characterized by insecurity and a high carbon footprint, with 65% of its energy derived from coal, which is the highest single contributor to the country's carbon emissions.
• The South African government's Integrated Resource Plan for Electricity 2010–2030 (IRP) projects that gas-to-power plants will provide 6,280MW, or nearly 14% of new-build capacity, though the author argues this should be increased given Mozambique's resources.
• South African companies already have a presence in Mozambique, notably Sasol, which has operated gas fields in Inhambane Province since 2004, producing 183 million gigajoules of gas annually, mostly for export to South Africa.
• To successfully import liquefied natural gas (LNG) from the Rovuma Basin for power generation and gas-to-liquids (GTL) production, South Africa must invest in an LNG receiver terminal, specifically suggesting PetroSA as a potential investor.
• Opportunities for South African firms in Mozambique include upstream exploration through consortiums with multinationals and downstream activities such as GTL plants, storage facilities, and gas-to-power plants, with production expected to begin in 2018.

APA

Gqada, I. (2012). Mozambique’s Gas: An Opportunity for South Africa? South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/08/Policy-Briefing-53.pdf

Chicago

Gqada, Ichumile. Mozambique’s Gas: An Opportunity for South Africa? South African Institute of International Affairs, 2012. https://saiia.org.za/wp-content/uploads/2012/08/Policy-Briefing-53.pdf.

Wikipedia

{{cite report |last1=Gqada |first1=Ichumile |title=Mozambique’s Gas: An Opportunity for South Africa? |publisher=South African Institute of International Affairs |date=August 2012 |url=https://saiia.org.za/wp-content/uploads/2012/08/Policy-Briefing-53.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gqada2012mozambiques, author = {Gqada, Ichumile}, title = {{Mozambique’s Gas: An Opportunity for South Africa?}}, institution = {South African Institute of International Affairs}, year = {2012}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2012/08/Policy-Briefing-53.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }