Mozambique Approves Major Electricity Project As It Establishes Itself As Power Hub

The government of Mozambique has approved the terms and conditions for a gas-fired power station that could generate 2,000 megawatts of electricity.

While addressing the press at the sidelines of a meeting of the Council of Ministers, the government spokesperson, Deputy Minister of Culture and Tourism, Ana Comoana, revealed that the projects will be carried out over a five year period.

The project which is expected to generate up to 1,700 jobs out of which 1,050 are permanent will entail an investment of USD 2.8 Bn.

Comoana highlighted that the project will earn the country foreign direct investment but did not disclose the source of the funds.

The project will also see other facilities being built in the port of Matola. These facilities will be for handling, storage, re-gasification and export of liquefied natural gas (LNG). There will be a gas pipeline linking the port to the power station.

The government gave Beluluane Gas Company (BGC) a concession of 30 years for financing, building and operating these projects.

Unconfirmed reports earlier indicated that the project involved both Mozambic and foreign investors.

The Council of Minister’s spokeswoman said the Beluluane project is expected to “turn Mozambique into a regional pole for the production and supply of electricity, implementing the integrated electricity master plan, which envisages the production of 8,000 megawatts by 2043”.

Mozambique has the largest power generation potential in Southern Africa from untapped coal, hydro, gas, wind, and solar resources.

South Africa will be among other Southern African countries that would benefit from the power generated at the new station.

Currently, South Africa benefits from Pande and Temane gas fields in Inhambane province.

Comoana further revealed that that power from the new plant will be sold at preferential prices, with discounts of between five and 20 percent.

Featured Image Courtesy: Aggreko