The Government of Mozambique has signed a Memorandum of Understanding (MoU) with Great Lakes Africa Energy (GLAE) to generate electric power using natural gas for domestic use at an estimated value of US $400 million.
The agreement signed last Friday in Maputo, Mozambique with GLAE, a United Kingdom registered Pan African energy solutions provider, will involve the construction of a 250 megawatt gas fried electricity generation power plant.
As part of the agreement, GLAE will develop, finance, build, own and operate the power plant to be fed with natural gas supplies from Mozambique's Rovuma Basin.
The MoU agreement was signed by Mozambique's Minister for Mineral Resources and Energy, Dr. Max Elias Tonela, and GLAE Director, Mr. Michael Kearns.
The agreement follows the result of Mozambique's Rovuma Basin domestic gas tender, the results of which were announced in January 2017.
Michael Kearns of GLAE said: "As part of the Mozambique Government's intended use of natural gas for the development of domestic power projects, GLAE will develop, finance, build, own and operate a 250 megawatt (MW) gas-fired electric generating power plant, planned in Northern Mozambique."
Mozambique, which has vast offshore gas resources, has decided to use some portion of the extracted gas for domestic power projects, with an aim of achieving a sustainable economic growth, including domestic energy production.
Speaking on behalf of the Government of Mozambique, Bruno Senguaio, Assistant to the Minister, said: “Mozambique has considerable renewable and conventional energy resource and is fast becoming a significant energy producer. Our Government’s chief priority is to ensure a secure and reliable energy supply for people of Mozambique. This is why the project is so important. In GLAE, we have found a reliable partner which will help us deliver this power plant. ”
The power plant in Northern Mozambique is a key regional infrastructure project. It will accelerate the development and industrialization of several other industrial projects, which have been shelved due to the lack of a steady power supply. At 250MW, GLAE’s Northern Mozambique gas fired power plant will be one of the largest conventional sources of electricity in the country.
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