Total and South African gas infrastructure developer Gigajoule signed a preliminary agreement to import LNG in Mozambique from the end of the 2022. Under the deal, US$7m will be invested in studies required for a final investment decision, which is expected for mid-2020.
The joint development agreement could lead to a US$350m investment to develop an LNG facility at the Matola harbour, near Maputo (south of the country), with an initial import capacity of 2 Mt/year (2.7 bcm/year). The project would comprise a floating storage and regasification unit (FSRU), and a 15-km-long pipeline that will be linked to the South African gas network. Matola Gas Company (MGC) won the contract to develop the infrastructure.
In addition, the project would allow the development of a 2 GW gas-fired power plant, at an estimated cost of US$2.8bn. The plant is planned to be operated by Central Térmica de Beluluane (CTB), an affiliate of Gigajoule.
LNG supply would come from Total’s international portfolio. The company is also developing the 12.88 Mt/year Mozambique LNG export project, in the north of the country, which is expected to be commissioned in 2024.