The Tanzania Petroleum Regulatory Authority and the National Petroleum Institute of Mozambique are on the verge of signing an agreement regarding the sharing of natural gas in the border area.

This action will take place within the framework of unitization, which will reshape the energy landscape in East Africa and have far-reaching implications for both countries.

The proposed unitization agreement was revealed this past Monday (06) during a meeting between Tanzanian media and the officials from the Tanzania Petroleum Regulatory Authority.

Unitization is the process by which an oil or gas reservoir spanning multiple areas is developed jointly by the license holders.

Charles Sangweni, the Director-General of the Tanzania Petroleum Regulatory Authority, stated that the essence of the agreement stems from the unique geographical location of these gas reserves.

Unlike traditional border disputes where demarcation lies within land, in this case, the gas deposits encompass an area that transcends both national borders.

The complex and sensitive issue of resource sharing brought Mozambique and Tanzania to the negotiating table, recognizing the potential for significant overlap in gas reserves.

The gas reserves extend to the south of Tanzania, where Blocks 4/1B and 4/1C overlap with the Mozambique border. On the other hand, Mozambique has discovered 172 trillion cubic feet of gas in the North Belt area, specifically in Blocks 5/A and 5/B.

It is now believed that these reserves may overlap with Tanzania’s territory, leading to further exploration.

Sangweni emphasized the global precedent of unitization agreements in such cases, through which countries collaborate to share resources when reserves overlap.

The head of the Tanzania Petroleum Regulatory Authority stated, “To implement this, we have been in contact with our colleagues through the Ministry of Foreign Affairs and the Ministry of Industry and Energy so that we can now conclude a Memorandum of Understanding that will bring cooperation in various areas, including the celebration of a unitization agreement.

Solar energy production in Mozambique is expected to nearly quadruple in 2024, based on the expansion of over a dozen solar parks, although it still represents a relatively small portion of the total, according to documents accompanying the budget proposal for 2024.

According to the document being discussed in parliament, which Lusa had access to today, the installed capacity of solar parks in 2023 was estimated by the Mozambican government to be 71,777 megawatt-hours (MWh), which is projected to grow to 278,519 MWh next year, an increase of 288 percent in the span of a year.

Only the Mocuba solar power plant in the province of Zambézia, located in the center of the country, is expected to increase its production by 5 percent to 73,067 MWh next year, according to government forecasts.

Mozambique aims to produce a total of 18,496,557 MWh of solar energy in 2024. This would represent a 1 percent reduction compared to 2023, primarily in hydroelectric power (14,995,899 MWh, -2%), mainly from the Cahora Bassa Hydroelectric Plant (HCB), with 14,506,036 MWh (-3%), but accounting for 82% of the entire national production structure.

“Comparing the estimated production and sales for 2023, HCB anticipates a reduction in energy production and sales for 2024 due to repair work on the diffuser gates (preparatory activities for the Central Rehabilitation Project – RS2) that will render generators 4 and 5 of the group unavailable,” the document reads.

The Mozambican state-owned electricity producer and distributor, Electricidade de Moçambique (EDM), anticipates a 7 percent growth in production in 2024 compared to projections for 2023, influenced by the substantial increase in production from the Mavuzi and Chicamba hydroelectric plants.