Glasgow-based company Aggreko is to build a natural gas-fired power plant on the border between Mozambique and South Africa under the terms of a partnership with South African investment company Shanduka Group, officials said Wednesday.
The plant will provide 107 megawatts of power to the two countries and the respective power purchase agreement have already been signed with South Africa’s Eskom and state Mozambican power company Electricidade de Moçambique (EdM).
Production from the plant, which is scheduled to start operating in the third quarter of this year, will be split into 15 megawatts for EdM and 92 megawatts for Eskom.
The project, which is the result of discussions between Aggreko, Shanduka Group, Eskom and EdM at the start of 2011, was approved by the South African energy regulator Nersa as well as by the country’s Ministries for Energy and State Companies.
Aggreko will be responsible for construction of the gas pipeline, a substation, and 1.5 kilometres of 225 kV transmission lines, according to the contracts signed with the Matola Gas Company and Gigawatt Mozambique.
This project, which will take two years, is expected to cost US$250 million. (macauhub)