Mozambican electricity company Electricidade de Moçambique (EDM) plans to buy natural gas from the Kuvaninga Power Plant, due to be built in the Chókwè district of Gaza province, southern Mozambique.

Officials from EdM and Kuvaninga signed a concession agreement involving investments of around US$98.6 million, of which US$10 million will be used to build a transmission line between the power pant and the Lionde sub-station, also in Gaza province.

The agreement, which has a lifetime of 16 years and was signed by the Energy Minister and the chairman of the board of Kuvaninga, Safura da Conceição, outlines that the power plant will be supplied with gas to generate 40 megawatts of electricity.

The power plant is due to be commercially operational with 14 to 18 months. (macauhub)