Japanese corporation Sumitomo has signed a deal with Mozambique’s state electricity utility EDM to build a 110 MW gas-fired power plant at Temane, Inhambane province, according to Mozambique state news agency AIM.
The AIM report says the project will involve the expansion of an existing plant at Temane, which was expanded from 6 MW to 12 MW in 2014. Sumitomo will invest $190 million in the project, AIM said.
Japanese newspaper Nikkei also reported the story, saying the plant will have a 100 MW capacity, with the power generation equipment supplied by Japan’s IHI and will be completed in 2021.
Sumitomo and IHI are also building a 110 MW gas-fired power plant on the outskirts of Maputo, which is currently scheduled to go operational in 2018, Nikkei said.
The chairman of EDM, Mateus Magala, signed the Temane project accord with Sumitomo during a trip to Japan this week led by Mozambique President Filipe Nyusi.
The project will be financed through a concessional loan from “the Japanese Bank,” Magala said, adding that EDM also needs to “ensure that the gas supply contract is signed with [national oil company]ENH.”
Magala said the plant will supply southern Mozambique as well as the central provinces of Sofala and Manica.
Temane is in the district of Inhassoro, province of Inhambane, close to gas wells operated by South Africa’s Sasol. Mozambique’s authorities are also planning a 400 MW gas-fired plant at Temane, which AIM reported this week will cost $700 million to build, plus $600 million for an interconnector to link it with Maputo.