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Matola LNG importation terminal, Mozambique

9th October 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Matola LNG importation terminal.

Location
Matola, Mozambique.

Project Owner/s
The project is being developed by the Beluluane Gas Company (BGC) – a joint venture between Total and Gigajoule. Mozambique’s State-owned gas company, ENH, also has a share in the project.

Project Description
The Mozambican Council of Ministers has awarded a liquefied natural gas (LNG) import concession to BGC and approved the construction of a 16 km, 28 inch pipeline linking the terminal to the existing Matola Gas Company (MGC) transmission network.

The concession includes the operation of a permanently moored floating storage regasification unit (FSRU), marine infrastructure and a new high-pressure gas pipeline.

Another concession was awarded to Central Térmica de Beluluane (CTB) for the construction and operation of a 2 000 MW gas-fired power plant in the Beluluane Industrial Park area, in Matola.


The proposed gas pipeline will connect the FSRU with the new gas-fired power plant. The pipeline will also connect to the existing MGC pipeline network in Matola, which is connected to the Rompco pipeline, supplying gas to South Africa.

Potential Job Creation
Not stated.

Capital Expenditure

According to a November 2019 MGC press release, the gas pipeline network, harbour infrastructure and the connection to the South African gas pipeline network through the MGC gas infrastructure, will cost about $350-million.

The total cost of the power plant, which will be built in phases as the market demand develops, is about $2.8-billion.

Planned Start/End Date
The project is scheduled to begin operating in 2023.

Latest Developments
On November 27, 2019, Gigajoule and Total signed a joint development agreement for the importation of LNG and power generation.

The front-end engineering design phase for a proposed greenfield LNG import terminal is under way and the developers of the project are intensifying discussions with potential energy and industrial off-takers in Mozambique and South Africa. Once completed, BGC will go out on enquiry to secure the services of an engineering, procurement and construction partner.

The proposed FSRU has received strong interest from shipowners, many of which have been negatively affected by the deferment or delay of projects as a result of the Covid-19 pandemic.

Total LNG business development director Shammi Herai has said, however, that the availability of an FSRU is no longer seen as a critical-path item given recent market developments and the focus currently is on securing the best possible commercial value, which could assist in lowering the overall cost of the project.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
BGC, email info@bgc.co.mz
CTB, email info@ctb.co.mz
MGC, email info@mgc.co.mz

Edited by Creamer Media Reporter

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