Maputo, 21 Aug (AIM) – The construction of Mozambique’s first cooking gas production unit at Temane, in the southern province of Inhambane, is progressing significantly and production is expected to begin next year.
This unit will have a capacity of 23 million Gigajoules of natural gas per year, which will in turn result in 30,000 tonnes of LPG cooking gas per year.
The production of LPG (liquefied petroleum gas) will meet around 70 per cent of the country’s needs, also opening up the possibility of exporting to countries in the region, in an investment budgeted at 760 million dollars.
According to the Maputo daily “Notícias”, citing the Minister of Mineral Resources and Energy, Carlos Zacarias, speaking in the northern province of Niassa, at the end of a meeting of the Coordinating Council of his ministry, “this is a unit that will boost the national programme to increase the use of LPG.”
According to the minister, without giving any details about the stage of the work, this unit will add value to the monetisation of natural gas, helping to reduce imports.
As a side effect of the project, business opportunities are expected to be created throughout its value chain, from production, transport and storage, through to distribution and resale to the public.
At this stage of construction, the plant is expected to provide up to 3,000 jobs.
The project results from the production sharing contract involving the South African multinational Sasol, which operates the Pande and Temane natural gas fields in Inhambane province, the National Hydrocarbons Company (ENH) and the publicly owned electricity company, EDM.
This contract will also enable power to be generated at the Temane Thermal Power Station, in a partnership between EDM, Sasol and GLOBELEC.
The investment for this project is budgeted at 650 million dollars to generate 450 Megawatts of power.