The Challenge

The Ministry of Energy wanted to identify ways and means to make gas more available to the Mozambican economy. In particular they were interested in potential opportunities and approaches for the natural gas and condensate market. IPA, Penspen and KPMG were commissioned to share their expertise and advise the Ministry on these points.

Our Solution

The objective of this project was to support the Ministry of Energy in assessing whether more of the natural gas being produced in Mozambique at present, and forecast future production, could be used within Mozambique rather than being exported via pipeline to South Africa or LNG exports. To this effect, IPA investigated and defined the potential of a viable domestic natural gas market and utilisation of associated liquids, covering the commercial, industrial, residential, power generation and transportation sector. IPA also reviewed Mozambique’s existing gas pricing arrangements and advised on the legal and regulatory framework required to ensure a smooth development and transition into a competitive environment.

As part of this assistance, IPA provided:

  • Gas supply advisory services including analysis of the efficiency and capacity of the petroleum rent collection agencies;
  • Engineering services including process mass balance calculation, pipeline network design, hydraulic analysis and cost estimation; and

Economics and socio-economic analysis including economic feasibility analysis and benefits distribution.