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    UK firm to build 250-MW gas power plant in Mozambique

Summary

The plant will be located in the Nampula province, receiving gas that is delivered from a field off the country's coast.

by: Joseph Murphy

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Complimentary, Natural Gas & LNG News, Africa, Gas to Power, Corporate, Exploration & Production, Contracts and tenders, News By Country, Mozambique

UK firm to build 250-MW gas power plant in Mozambique

UK firm GL Africa Energy has signed an agreement with Mozambique's government to finance, build and operate a 250-MW gas power plant in the country's north at a cost of $400mn, the company announced on November 5.

The plant will be located in the Nampula province, receiving gas that is delivered from a field off the country's coast. The owner of the gas field was not disclosed, although TotalEnergies, ExxonMobil and Eni are leading consortia to develop Mozambique's offshore Rovuma gas basin.

It will mark GL Africa Energy's biggest investment to date. The company invests in energy projects in south Africa and the Great Lakes area.

The project will be developed in three phases, with the first running for 16 months and bringing the plant's capacity to 50 MW at a cost of $90mn. The second and third phases will deliver the remaining 200 MW of capacity and take 24 months to complete. Financing will be 70% debt and 30% equity.

The plant's electricity will be mostly bought by Mozambique's state power firm Mozambique Electricity, although excess supply will be delivered to other south African countries.

The agreement follows a memorandum of understanding GL Africa Energy signed with Mozambique's government on generating power from domestic gas in May 2018.