Great Lakes Africa Energy will build a $400 million power plant in Mozambique using natural gas

Mozambique looks to generate electric power using natural gas for domestic use as it partners with Great Lakes Africa Energy (GLAE) to build a gas-powered plant worth about $400 million.

GLAE Director 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.”

Mozambique intends to extract a portion of its offshore gas resource for domestic power projects with an aim of achieving a sustainable economic growth including domestic energy production.

In 2017, Mozambique’s Ministry of Mineral Resources and Energy awarded large quantities of natural gas for projects in the domestic market to Yara International, Shell Mozambique BV and GL Energy Africa. Three of 14 bidders were successful, and they were awarded a total of 462 million cubic feet a day of natural gas.

Shell requested between 310 and 330 million cubic feet of gas a day to produce 38,000 barrels a day of liquid fuels (gas-to-liquid diesel, naphtha and kerosene), plus 50 to 80 megawatts of electricity. Norwegian company Yara International requested 80 to 90 million cubic feet a day to produce between 1.2 and 1.3 million tonnes of fertilizer a year. Meanwhile, GL Energy Africa has a much larger electricity project for which it requested 41.8 million cubic feet of gas a day to generate 250 megawatts of power. Hence the Memorandum of Understanding with the Mozambique government.

On the reason to partner with the UK firm, Bruno Senguaio 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. In GLAE we have found a reliable partner which will help us deliver this power plant.”

GLAE invests energy solutions in the Great Lakes and Southern Africa regions and is 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.