Mozambique and Malawi Mull Gas Pipeline Link

  • Mozambique and Malawi will study the possibility of building a pipeline linking the Rovuma gas reserves off Cabo Delgado to Malawian territory, the two countries announced today in a joint statement.
  • The news comes as Mozambique announces plans to establish a sovereign wealth fund later this year as it prepares to start natural gas exports amid soaring global gas prices. 

The delegations of the two countries agreed to analyse the possibility of building a gas pipeline from Rovuma to Malawi for the import of gas from Mozambique by the neighbouring country. This was revealed in a joint statement after the visit of Malawi’s head of state, Lazarus Chakwera, to Mozambique, between Thursday and Sunday last week.

Malawi is one of the countries supporting the fight against terrorism in Cabo Delgado as part of the military mission of the Southern African Development Community (SADC).

In addition to the gas pipeline, and still in the energy sector, the two countries agreed to negotiate a possible joint venture for the development of a 41 MW hydroelectric dam at the Zoa Falls, on the Ruo river, which establishes the border between the two countries. The Ruo River is the largest tributary of the Shire River in southern Malawi and Mozambique. It originates from the Mulanje Massif and forms a 80 km natural border between Malawi and Mozambique.

Mozambique also obtained the green light from Malawi for the development of the 1.9 megawatt Berua mini-hydro for sharing between the populations of Milanje in Mozambique and Thyolo in Malawi.

Mozambique plans to establish a sovereign wealth fund later this year as it prepares to start natural gas exports that the government says may generate US$96 billion in revenue for the world’s third-poorest nation.

The authorities are in the process of finalising draft legislation that will govern the management of the fund, Finance Minister Max Tonela said in an interview last Thursday in Washington. He expects the fund to be operational before Mozambique’s first liquefied-natural-gas exports begin flowing by October from an offshore project that Eni SpA is developing. Read more

Author: Bryan Groenendaal

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