Gas in Mozambique: USD 760 million of investments

Gas in Mozambique will therefore be supported by massive investments. One of the objectives is to produce 23 million gigajoules of LNG/year from three liquefied natural gas (LNG) fields located in the north of the country.

Gas in Mozambique: a promising investment for the continent

760 million USD for the Temane project

Mozambique’s gas and Temane natural gas project will receive an investment of more than US$760 million. The Mozambican government and the South African chemical company Sasol made this final investment decision (FID) on Friday, February 19. Together, they are then targeting the development of new LNG reservoirs at the Inhassoro and Temane fields in Inhambane province.

Construction of the Temane project will begin in July 2021.

The IDF will first facilitate the production of 23 million GJ (gigajoules) of LNG per year. They can be used to produce 30,000 tons of cooking gas or LPG/year. The DIF will also streamline the production of 450 MW of electricity at the Temane combined cycle power plant.

Also, the project will allow the production of 4000 barrels of light oil per day for export.

3000 direct jobs and efficient, low-cost electrification

The development of gas to electricity plants will increase the injection of electricity into the national grid of the country. This will contribute to the electrification objectives by providing an efficient and low cost supply. Electricity exports will also be facilitated locally.

This investment significantly increases the value of natural gas in Mozambique. By fully capitalizing on this resource, Mozambique is transforming its domestic energy sector, accelerating industrialization and stimulating economic development.

Finally, the Temane natural gas project is expected to increase job creation. On the Temane project, 3,000 Mozambicans will be directly employed and thousands more will be indirectly hired over the next three years.

Save money on import shots

Currently, Mozambique imports about 75% of oil and gas products. Not only will the investment contribute to the reduction of deforestation nationwide. But the production of 30,000 tons of LPG/year will also allow Mozambique to significantly reduce these imported volumes.

The rush of foreign gas companies

British company Utec chosen for TechnipFMC’s field studies

As Mozambique is a territory rich in LNG, it is naturally coveted by many international gas companies. Like TechnipFMC, which has been in charge of the exploitation of 3 fields with a combined potential of 2400 billion m³ of LNG since 2014

The British company has contractedUtec ‘s expertise for the implementation studies of the floating gas liquefaction platform. The objective is to bring 450 billion cubic meters of gas into production in the first phase.

Italian Saipem invests in African LNG

Italian engineering giant Saipem is also looking to become a major player in the deployment of LNG infrastructure in sub-Saharan Africa. Despite the global health situation and the growing Islamist insurgency, the group assures to continue to develop its project in Mozambique.

Today, they plan to develop the production of blue hydrogen for the short term and green hydrogen for the long term. As soon as there is an improvement in cost and logistical constraints, the players in the sector will become hyper-competitive. But it will also benefit employment in Mozambique.

The geographical position of the country is therefore strategic for all these companies. Its resources could help meet the needs of customers in the Atlantic and Asia-Pacific markets. And all this while taking advantage of the growing demand for energy in the Middle East and the Indian subcontinent.

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