Gigajoule expects to import first LNG cargo at new Mozambique terminal by mid-2025
South African energy company Gigajoule is confident of reaching financial closure by year-end ahead of construction of its $550-million Matola LNG import terminal in Mozambique with joint development partner TotalEnergies, the chief executive of the privately-held firm said on Thursday.
The liquefied natural gas (LNG) terminal, which also has Mozambican shareholders, is expected to receive its first shipments of gas to a permanently moored floating storage and regasification unit in Matola harbour, close to Mozambique's capital Maputo, by mid-2025, CEO Jurie Swart said on the sidelines of a gas conference in Cape Town.
The Matola terminal could become South Africa's first major LNG supplier at a time government wants to significantly expand its domestic gas market but faces a gas supply crunch as onshore gas fields operated in Mozambique by Sasol start running dry within a few years.
Sasol's Tande and Temane fields in southern Mozambique supply the bulk of South Africa's gas needs via the 865 km Rompco pipeline. According to domestic industry body IGUA's 2021 annual report, South Africa currently faces a gas supply shortfall of some 170 petajoules a year.
"Our realistic case is that construction for the LNG import facility will start in January next year and first gas is seen mid-2025," Swart told Reuters.
He said Gigajoule, which is also co-developing a 2 000 MW gas-to-power plant close to Matola, intends to link the terminal to the Rompco pipeline to supply gas to South Africa.
"Financing is not that difficult ... in the commercial market that we've canvassed for both these projects we think we've got full subscription from all the major commercial banks in South Africa and export credit agencies," Swart said.
Matola is independent from Total's $20-billion LNG development to the north of Mozambique that was disrupted by violence caused by insurgents linked to Islamic State, although the French oil major expects to restart the project this year.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation