Image: Caixin Global
Developed by South African clean energy investor Gigajoule; major in oil and gas, TotalEnergies; and Mozambique’s natural gas distributor, Matola Gas Company (MGC), the initial engineering design of Beluluane Gas Company (BGC) Liquefied Natural Gas (LNG) Import Terminal Project has been completed and gas delivery is underway. expected by 2024.
The terminal is expected to ensure an interrupted supply of natural gas to more than 30 industries in the Matola region of southern Mozambique and facilitate exports to other countries in the Southern African Development Community region. The project will use MGC’s existing Rompco pipeline network – a pipeline that connects Mozambique to South Africa – to meet the growing demand for natural gas in southern African countries.
After years of pre-feasibility studies, the LNG import concession was awarded to BGC by the Government of Mozambique after approval of the construction of a new pipeline that will connect the terminal to an existing MGC transmission network. The concession will see the development and operation of a permanent floating regasification storage unit (FSRU), as well as onshore infrastructure and a new gas pipeline.
The newly constructed infrastructure is designed to connect the FSRU to a proposed 2,000 MW gas-fired power plant in the province of Matola and includes the development of a land-based LNG Truck Loading (TLF) facility that will provide outlying areas with a gas supply.
“The TLF will enable industries and independent power producers get natural gas even in areas far from the natural gas infrastructure, ”said Jurie Swart, CEO of Gigajoule, who added:“ This has become all the more important since the announcement of the change in the law on the electricity regulation of 100 MW earlier this year. ”
The proximity of the project to existing MGC infrastructure and the Rompco pipeline is expected to significantly reduce transport costs and facilitate the goals outlined in South Africa’s 2019 Integrated Resource Plan, which aims to ensure that the grid capacity of the 33% of the country is made up of solar, photovoltaic and wind energy. sources by 2030.
“Although the BGC partners are in favor of a energetic transition and decarbonization – which is not negotiable – the sun doesn’t always shine, and the wind doesn’t always blow. Thus, gas-fired power plants are the most cost-effective alternative for balancing the variability of renewables and for maintaining a constant and distributable power supply to the grid, ”Swart said, adding that natural gas is a major source of production. electricity much cleaner than coal.
The final investment decision is expected in mid-2022, pending the completion and approval of the final environmental reports, development processes and licenses, which were noted to be on track.
Construction of the terminal was announced in anticipation of declining gas production from the onshore Pande and Temane gas fields in Mozambique’s Inhambane province, which has failed to meet the current demand necessary for the development of the market and power generation in the region.
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