The President of the Republic, Filipe Jacinto Nyusi, on 28 March 2022, in Inhassoro, Inhambane Province, laid the foundation stone of the Temane gas and power project which aims to build a combined cycle thermal power plant using gas, a cooking gas factory and a power transmission line between Temane and Maputo.
The Temane power plant project is the result of a production sharing agreement (PSA) involving the Mozambican government, ENH and SASOL, budgeted at around US$760 million and expected to produce 4,000 barrels of light oil per day, 23 million gigajoules of natural gas per year for power generation, as well as producing 30,000 tons of liquid petroleum gas (LPG), commonly known as cooking gas.
The natural gas, to be used for the implementation of the Temane Thermal Power Plant (CTT) Project, will be supplied by Empresa Nacional de Hidrocarbonetos (ENH) and SASOL, in their capacity as co-sellers of the product, under a contract signed with Electricidade de Moçambique, E.P. (EDM) in May 2021.
This project will guarantee generation of 450 megawatts of electricity and is the result of a public-private partnership formed and led by Globeleq, EDM and SASOL, with a concession valid for 25 years, and at the end of the contract the asset will be transferred to the Mozambican state. With an investment of US$652.3 million, CTT will produce electricity, in a combined cycle generation model based on natural gas, which will be supplied to EDM for distribution on the national market and the surplus will be exported to the region.
CTT’s project will be built by the Spanish contractor TSK and is expected to last 34 months, with commercial operation scheduled for 2024. This project is expected to increase about 16% of the installed capacity of energy production in the country, contributing to meet the demand of about 1.5 million families, under the Universal Access to Energy Programme, by 2030, and to national industrialisation.
The project also includes construction of a 563 km 400 kV transmission line, valued at around US$500 million and includes construction of three substations in Vilankulo, Chibuto and Matalane, as well as expansion of the Maputo substation.
This infrastructure, called the Temane Transmission Line (TTP), represents the first phase of the development of the “Backbone” Project of the High Voltage power transmission system from Tete to Maputo, combined with the power generation projects in the Zambezi Valley. In addition, the TTP will create conditions for rural electrification, as well as boosting agricultural and mining activity along its route.
At the launching ceremony, the Governor of Inhambane Province, Daniel Tchapo, congratulated the effort undertaken by the Government in the implementation of this project, and noted that it will contribute to leverage the economy of Mozambique and Inhambane in particular.
The President of the Republic, Filipe Jacinto Nyusi, said that this clean energy venture confirmed the establishment of a multifaceted energy matrix of energy production using gas, which guarantees energy autonomy for Mozambique and its positioning as a preponderant actor in the supply of energy to neighbouring countries and also as a reference producer and supplier of gas in the national and regional market.
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