Great Lakes Africa Energy will “develop, finance, build, own and operate a 250-megawatt gas-fired power plant,” in Mozambique according to a statement quoted by Mozambican newspaper Notícias, adding that the British company and the government of Mozambique signed a memorandum of understanding for the use of natural gas from the Rovuma basin.
The project has an estimated cost of US$400 million and the memorandum comes after the company was selected in a public tender for the allocation of natural gas for domestic purposes, the result of which was announced on the last day of January 2017.
The thermal power plant will be built in the Nacala district, with the British company being one of three selected out of 14 that submitted proposals to use the Rovuma natural gas.
Great Lakes Africa Energy was founded in 2013 that invests in electric power generation solutions in the Great Lakes and Southern Africa regions, with the announced goal of reaching production of 1,000 megawatts.
The extraction of natural gas in the Rovuma basin is expected to start in 2022 in the Area 4 Block, a project which is led by Italian group ENI and US ExxonMobil, according to recent statements by the Minister of Mineral Resources and Energy of Mozambique, Max Tonela.(macauhub)