Newsletter Subscription

Mineral Resources and Energy Minister Ernesto Max Elias Tonela and the head of GL Africa Energy Michael Kearns signed a concession agreement for a 250 megawatts LNG power plant. The plant will be in Nampula province in northern Mozambique. It also starts the first of a three-phased investment worth US$400 million. 

The first phase will be 16 months long with an investment of US$90 million and 50 megawatts capacity development. The second and third phases will add 200 megawatts and take less than a year.

GL Energy Moçambique will construct and operate the plant. They hold the initial public interest and will be the main purchaser of the generated electricity. The excess electricity will be exported to other regions through the South African Power Pool (SAPP). It will be structured as a PPP and funded by 70% debt and 30% equity.  

GL Africa Energy plans to acquire gas from Rovuma Basin offshore Mozambique. This project represents their largest investment to date. It will provide electricity to over half a million people. 

The LNG solution will help as a bridge fuel for at least two decades. Bridge fuels help reduce greenhouse gas emissions by replacing coal-fired power and are themselves slowly replaced by more sustainable energy sources. This strategy forms part of GL Africa Energy’s target of generating 1000 megawatts across Africa by 2025.

We are proud to announce the signing of a deal with the Mozambique Government to build a $400m 250MW LNG power plant in Nacala.

LNG is a key bridge fuel that will help Africa transition towards renewables. Read more @Reuters:https://t.co/FCDWoP0Q7f#BridgeFuel #PoweringAfrica

— GL Africa Energy (@GLAfricaEnergy) November 5, 2021

This project forms part of the Gas Monetization Strategy of the Mozambique government, and the usage of gas from the Rovuma Basin will further help reduce energy costs. 

Mamadou Goumble, CEO of Energy Business, JCG said: “We are delighted to take another step towards completing the Nacala Gas Fired plant. It is a historic milestone for the region. 

“Power and development go hand-in-hand, and we are so proud to play our part in supporting the communities of Nacala and the entire region of southern Africa. This plant will ensure reliable power for tens of thousands of businesses and homes. It will change the lives and fortunes of Mozambicans and beyond.

“We’re thankful to our partners in the Government of Mozambique for backing our vision. It demonstrates the power of public and private collaboration. It is just the beginning of our long-term commitment to the country.”

Photo: An illuminated oil and gas refinery plant - Stock Image (Mihai Andritoiu | Dreamstime.com)