French energy company TotalEnergies expects to take the final investment decision (FID) on a new liquefied natural gas (LNG) import terminal in Mozambique by September 2024, reported Reuters, citing a spokesperson.
Planned to be built at Matola port in Mozambique, the Matola terminal could become the first major LNG supplier to South Africa upon completion.
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The plan will align with the government’s efforts to significantly expand its gas market locally.
Mozambique is facing a gas supply shortage due to the gradual depletion of Sasol-operated onshore gas fields within the next few years.
The terminal is estimated to cost around $550m to develop. It is being developed by TotalEnergies in partnership with South Africa’s privately-held Gigajoule and Mozambican entities.
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As per the plan, the terminal is expected to receive gas shipments to a permanently moored floating storage and regasification unit in Matola harbour, close to Maputo.
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By GlobalDataThe Matola LNG terminal forms part of a project that links it to a combined-cycle gas power plant of up to 2GW.
The terminal is due to be linked to the Rompco pipeline to enable gas supply to South Africa.
A TotalEnergies spokesperson was quoted by the news agency as saying in an email: “Matola LNG aims to provide primarily power to South Africa, which faces serious energy issues with recurrent loadsheddings (power cuts) and whose current power generation comes from coal-fired power plants.”
In a separate announcement, TotalEnergies has commissioned the Cape Ann floating storage and regasification unit in the port of Le Havre, France.
The first megawatt-hours of gas have been injected by the terminal into the GRTgaz-operated grid, using LNG from Norway.
In a press statement, TotalEnergies said: “TotalEnergies has contracted 50% of the terminal’s annual capacity of around 5 billion cubic meters, to supply it with LNG from its global portfolio. The remaining capacity will be marketed according to rules approved by the regulator.”
