January 2020, Vol. 247, No. 1
Global News
Billion-Dollar LNG Project in Southern Mozambique Expected in 2020
A final investment decision on a $3.15 billion LNG project near Mozambique’s capital will be taken around the middle of 2020, France’s Total and its partners in the project said after signing an agreement to develop the project.
The project will see a floating storage and regasification unit moored in the harbor of Matola, a suburb of the capital Maputo, and it will be connected to a new gas-fired power plant nearby and to South Africa’s gas network. Total will supply the gas.
Mozambique is on the cusp of a gas boom as blockbuster projects by the likes of oil majors including Total and Exxon Mobil get underway in its gas-rich north.
While this separate project is situated at the opposite end of the country, it shows how one of the world’s most impoverished nations is working to leverage unprecedented inflows of foreign direct investment in order to develop.
Total, Gigajoule and MGC signed a memorandum of understanding related to the project in 2017. Concessions for the development and construction of the gas infrastructure and for the design, construction and operation for the power station were awarded in July.
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