Mozambique President Filipe Nyusi has ceremonially laid the first stone for the Temane project.
The ceremony marks the start of construction on the 450 MW Central Termica de Temane (CTT), the Temane-Maputo power line and an LPG plant. It took place in Inhassoro, Inhambane Province, on March 28.
U.S. Government, through @USAIDMozambique, participated in the groundbreaking of the Central Térmica de Temane power plant and the Temane Transmission Project. The 2 projects will help strengthen #Mozambique's energy security and increase access to affordable energy. #EUAMOZ ⚡️ pic.twitter.com/V43rImt9Tb
— Embaixada dos EUA em Moçambique (@USEmbassyMaputo) March 28, 2022
Supply for the power and LPG facilities will come from the PSA project and involves an investment of $760 million from Sasol. The project will provide 30,000 tonnes per year of LPG, accounting for more than 70% of local demand and reducing the need for imports.
Gas will go to the 450 MW Temane power plant. The PSA will also produce 4,000 barrels per day of light oil. PSA will start producing in 2024. Power supplies are expected in 2025.
Sasol Petroleum Mozambique is the operator of the PSA. It covers three fields: Inhassoro, Pande and Temane. Work includes development wells and a processing facility.
The Instituto Nacional de Petróleo (INP) has reported the PSA discoveries have gas in place volumes of around 2.5-3 trillion cubic feet, with recoverable volumes of 1-1.5 tcf. Sasol has also discovered 30-40 million barrels of liquids.
Sasol has published a number of tenders for local companies to participate in the PSA work. In a tender closing on March 28, the South African company called for expressions of interest in mechanical well pad construction.
Sasol was looking for contractors with experience and able to meet local content requirements. Contractors were asked to share information on ownership and what share of estimated cost would remain in country.
The Temane power plant will supply power to Electricidade de Moçambique (EDM) under a 25-year contract. Sasol and Globeleq closed the financing for the project in December 2021.
EDM has been in discussions with a number of potential customers. These include Zimbabwe Electricity Supply Authority (ZESA). EDM has raised the possibility of increasing power exports to Zimbabwe from January 2025, when CTT starts up.
The Mozambique company has also discussed supplies from CTT to Eswatini and South Africa’s Eskom.