A UK based energy firm, Great Lakes Africa Energy (GLAE) has signed a partnership with Mozambique to build and operate a 250 MW gas-powered plant ) to generate electric power using natural gas for domestic use at an estimated value of US $400million
The power plant at Nakala District will utilize gas from the Rovuma basin.
The UK firm invests energy solutions in the Great Lakes and Southern Africa regions and is among among 3 firms that had been selected in 2017, from 14 firms that originally bid for the Natural Gas Development Projects in the Rovuma gas basin.
The agreement between Mozambique and GLAE was signed in Maputo, Mozambique with GLAE will see the UK firm will develop, finance, build, own and operate the power plant to be fed with natural gas supplies from Mozambique’s Rovuma Basin.
The agreement follows the result of Mozambique’s Rovuma Basin domestic gas tender, the results of which were announced in January 2017.
GLAE Director, Mr. Michael Kearns 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.”
According to a statement sent to newsrooms, 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 resources and is fast becoming a significant energy producer. Our Government’s chief priority is to ensure a secure and reliable energy supply for the 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 MoU agreement was signed by Mozambique’s Minister for Mineral Resources and Energy, Dr. Max Elias Tonela, and GLAE Director, Mr. Michael Kearns.
“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. “ the statement reads in part.