The Gigawatt natural gas power plant project marks a significant development for Mozambique, as the country looks to become a major exporter of power The financial close of the first gas-fired power station in Mozambique on May 30, 2014 marked the beginning of a new era for the country, as it took its first steps towards gas-to-power beneficiation and becoming a major energy player in southern Africa. The fact that this project is also Mozambique’s first IPP makes it even more significant. After a lengthy development period, construction on the $210m project commenced on the same day as financial closing.

Mozambique achieved its independence from Portugal in 1975, and after an extended period of civil war, peace came in 1992. Since then, the country has held four peaceful elections, and has strong political and economic ties with its neighbouring South Africa as a member of the Southern African Development Community (SADC). Economic growth and the development of large projects in mining, oil and gas infrastructure are key driving forces behind increased electricity demand in Mozambique.

At the same time, there is a shortage of energy supply in the Southern African region, which has created an opportunity for Mozambique to not only increase power generation for domestic consumption but also export to a power hungry region. Blessed with a wealth of natural resources, including coal, gas and hydrocarbons, the country’s potential energy generation could reach up to 16GW over the next decade; a huge step up from its current energy demand of 700MW per annum.

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