Development agreement signed to progress Mozambique gas project
Globeleq, lead partner in the Temane Energy Consortium (TEC), and Electricidade de Moçambique E.P. (EDM) have signed a joint development agreement, which will progress the 400MW gas-fired power project located at Temane in Inhambane Province.
The agreement was signed on the sidelines of the 2018 Africa Energy Forum, in Mauritius.
To date, Temane has been developed by EDM and Sasol New Energy Holdings (Sasol), with EDM holding 51% and Sasol 49% in the project.
TEC will take a 60% stake in EDM’s shareholding of the local SPV company, with EDM holding the remaining 40%.
The project will supply low cost, reliable power to EDM through a 25-year tolling agreement using natural gas supplied from the Pande-Temane fields operated by Sasol and ENH, the state-owned hydrocarbon company.
Globeleq and its TEC partner, eleQtra, have proven track records in successful gas-fired power projects in Cote d’Ivoire, Ghana, Tanzania and Cameroon. TEC will also provide support to EDM in the development of the Temane Transmission Project.
Globeleq’s CEO, Paul Hanrahan said: “The Temane project will provide Mozambique with significant base load power to help drive economic growth. As Globeleq enters the Mozambique market, we look forward to partnering with EDM in this exciting venture.”
EDM selected TEC in December 2017 as part of a competitive bidding process. EDM chose the consortium due to its experience developing and operating gas-fired power projects; competitive cost of capital; and ability to deliver the most competitive tariff.
With the signing of this agreement, the Globeleq-led consortium will officially join EDM in developing the project and bring it to financial close.
EDM’s Chairman, Mateus Magala, said: “EDM welcomes its long-term bankable partnership with the Globeleq consortium. Their commitment and experience in the power sector will help EDM in achieving its goal in providing universal access by 2030 through affordable power to the people of Mozambique.”