Mozambique https://constructafrica.com/ en Total Pledges to Resume Construction of US$20bn LNG Plant in Mozambique https://constructafrica.com/news/total-pledges-resume-construction-us20bn-lng-plant-mozambique <span class="field field--name-title field--type-string field--label-hidden">Total Pledges to Resume Construction of US$20bn LNG Plant in Mozambique</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Wed, 06/09/2021 - 14:19</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-06/MOZA2-min.jpg?itok=alMiJmXv" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Following attacks by a group linked with Islamic State in late March, the French energy company suspended all works on the Mozambique LNG project.&nbsp;</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>The deadly siege on Palma lasted for five days and resulted in dozens of deaths and the displacement of over 40,000 people. In late April 2021, the company said, "Considering the evolution of the security situation ... Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total, as operator of Mozambique LNG project, to declare force majeure."</p> <p>Mozambican businesses are feeling the pain of this move because declaring force majeure means a weighted suspension. This allows Total to cancel contractors. This LNG scheme was meant to award US$2.5 billion in contracts to Mozambican companies. This would represent a third of Total’s onshore contracts.&nbsp;</p> <p>"Mozambique was considered the next LNG El Dorado thanks to its large, low-cost resource base and ideal location to supply key demand centers. "But instead, it is looking more like ... Mozambique no longer playing a big role in the 2020s," said Thomas Adolff from Credit Suisse.</p> <p>However, the African Energy Chamber, an umbrella organisation for businesses in Africa' energy industry, has stated that it is&nbsp;disappointed about Total’s decision to declare force majeure on its Mozambique LNG Project. The&nbsp;Chamber stated in a press release that "While the African Energy Chamber (“AEC”) stands in solidarity with Mozambique and Total and all energy investors, we believe the declaration of force majeure could have been prevented and comes prematurely. We encourage all parties involved to have a better and more open conversation to find a practical and pragmatic commonsense solution for the force majeure event to cease and for the project to resume, for the benefit not only of Total, but also of international and local companies, and especially for Mozambique’s people."</p> <blockquote class="twitter-tweet"> <p dir="ltr" lang="en">''We are disappointed about @Total's recent decision to declare force majeure on its <a href="https://twitter.com/hashtag/Mozambique?src=hash&amp;ref_src=twsrc%5Etfw">#Mozambique</a> LNG Project. We believe the declaration of <a href="https://twitter.com/hashtag/forcemajeure?src=hash&amp;ref_src=twsrc%5Etfw">#forcemajeure</a> could have been prevented...'' Full article here: <a href="https://t.co/PE5LJMbeqf">https://t.co/PE5LJMbeqf</a> <a href="https://twitter.com/hashtag/ChamberNews?src=hash&amp;ref_src=twsrc%5Etfw">#ChamberNews</a></p> — African Energy Chamber (@energy_african) <a href="https://twitter.com/energy_african/status/1386639921432219651?ref_src=twsrc%5Etfw">April 26, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> <p>“Mozambique continues to be one of the most attractive options to produce gas in the world due to its carbon neutrality, representing a viable solution for climate change. Such a rare opportunity for Africa and the world” stated Mr. N.J. Ayuk, Executive Chairman of the African Energy Chamber.</p> <p>“the energy industry continues to grapple with multiple insecurity issues, community engagement, climate change, energy poverty, greater cooperation between stakeholders is required to find beneficial solutions” added Ayuk.</p> <p>The country has been relying on this project to reinforce its economic development plans. Mozambique’s projected revenues were put at US$100 billion in revenue over 25 years.&nbsp;</p> <p>This projection is roughly six times the country’s annual GDP. After these events, the International Monetary Fund reduced its forecast for Mozambique's economic growth from 3.8% to 2% in 2021.&nbsp;</p> <p>During a visit to Paris in May this year (2021) for the France-Africa summit hosted by French President Emmanuel Macron, Mozambique President Filipe Nyusi met with the Chairman and CEO&nbsp;of the Total oil company Patrick Pouyaneé. Following the meeting, Mr.&nbsp;Pouyanne confirmed Total's commitment to the US$20 billion&nbsp;gas project in Cabo Delgado.</p> <p>“Of course we faced a dramatic situation in Cabo Delgado, in Palma, recently, so we had to make decisions.” These included “not keeping personnel in Afungi” (the project construction site). But, he added, the company fully&nbsp;trusts the Mozambican government to restore calm in the region.</p> <p>“As soon as Cabo Delgado has peace again, Total will return,” the CEO of the French oil company promised.</p> <p><em>Photo:&nbsp;Map of Mozambique showing Important Cities (Marko Bukorovic&nbsp; | Dreamstime)</em></p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/companies" hreflang="en">Companies</a></div> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/government-policy" hreflang="en">Government Policy</a></div> <div class="field__item"><a href="/legal-risk" hreflang="en">Legal &amp; Risk</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/new-energy-projects-mozambique-tanzania-uganda-and-senegal" hreflang="en">New Energy projects in Mozambique, Tanzania, Uganda, and Senegal</a></div> <div class="field__item"><a href="/news/total-confirms-mozambiques-lng-project-track" hreflang="en">Total Confirms Mozambique’s LNG Project is on Track</a></div> <div class="field__item"><a href="/news/security-and-community-safeguarding-operations-mozambique" hreflang="en">Security and Community: Safeguarding Operations in Mozambique</a></div> <div class="field__item"><a href="/news/mozambique-21-growth-rate-forecast-2021" hreflang="en">Mozambique: 2.1% growth rate forecast for 2021</a></div> </div> </div> <div class="field field--name-field-related-reports field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/insights/mozambique-construction-market-report" hreflang="en">Mozambique Construction Market Report</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=389&amp;2=field_comments&amp;3=comment" token="_aH9yBdMsbQkPI5J1fd8knqPUAf-K4LhH2dvmCl7e9Y"></drupal-render-placeholder> </section> Wed, 09 Jun 2021 10:19:00 +0000 Diana Muringo 389 at https://constructafrica.com https://constructafrica.com/news/total-pledges-resume-construction-us20bn-lng-plant-mozambique#comments Mozambique: Agility Logistics Park Opens New Park in Maputo https://constructafrica.com/news/mozambique-agility-logistics-park-opens-new-park-maputo <span class="field field--name-title field--type-string field--label-hidden">Mozambique: Agility Logistics Park Opens New Park in Maputo</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Sat, 05/29/2021 - 02:40</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-05/Agility%20Park1_resize-min.jpg?itok=1PjXS5wA" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The leading logistics and warehouse provider has opened its new 290,000m<sup>2</sup>&nbsp;Agility park in Maputo, Mozambique.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>This new park adds to the growing network of international-standard warehouse parks the company has developed in Africa. The new warehouse park is strategically located on the new Maputo Ring Road in the Marracuene-Chiongo district.&nbsp;</p> <p>This strategic location provides easy access to the blooming Maputo Market and road connections to the major highways leading to other large markets in the north of Mozambique and South Africa.&nbsp;</p> <p>The 32,000m<sup>2</sup>&nbsp;developed for the first phase of the Agility warehouse provides ready-built, secure, international-standard facilities that are readily available to lease by local companies and multinationals.&nbsp;</p> <p>Tenants can lease the warehouses for storage, packaging, processing, distribution, assembly, and light manufacturing. Agility warehouses meet international environmental standards. They also feature eco-friendly construction materials.&nbsp;</p> <p>The company used wind-driven roof fans, energy-efficient roofs, side-insulated panels, skylights for natural lighting, LED and energy-saving bulbs, and solar-powered streetlights. The warehouse site will also provide eco-friendly waste management services and carbon footprint reporting. It will also use recycled paper, metal, plastic, and carbon waste.&nbsp;</p> <blockquote class="twitter-tweet"> <p dir="ltr" lang="en">Agility opens a new Logistics Park in <a href="https://twitter.com/hashtag/Maputo?src=hash&amp;ref_src=twsrc%5Etfw">#Maputo</a>. The ALP is part of our growing network of international-standard warehouse parks serving key African markets: <a href="https://t.co/HJcs1Ta7D0">https://t.co/HJcs1Ta7D0</a></p> — Agility Logistics Parks (@AgilityALP) <a href="https://twitter.com/AgilityALP/status/1381901425278603264?ref_src=twsrc%5Etfw">April 13, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> <p>This Agility Logistics Park in Maputo is part of the expanding network of quality warehouse parks that the company is funding and developing across key markets in Africa. This is to support the development of domestic and regional trade. Some other Agility Logistics Parks are located in Cote D’Ivoire, Ghana, and Nigeria.</p> <p>The CEO of Agility Africa, Geoffrey White, said, “We believe that the provision of international-standard warehouses in Africa for storage, distribution and light manufacturing is one of the fundamental building blocks necessary for economic growth. The Agility Logistics Parks enable companies, whether multinationals or small and medium local enterprises, to access quality infrastructure easily, quickly and cost-effectively, enabling growth and prosperity.”</p> <p><em>Photo: Agility Logistics Park, Maputo, Mozambique (agility.com)</em></p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/business" hreflang="en">Business</a></div> <div class="field__item"><a href="/industrial" hreflang="en">Industrial</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/mozambique-ncondezi-energy-restarts-construction-solar-power-project" hreflang="en">Mozambique: Ncondezi Energy Restarts Construction of Solar Power Project</a></div> <div class="field__item"><a href="/news/construction-temane-power-plant-mozambique-start-2nd-half-2021" hreflang="en">Construction of Temane Power Plant in Mozambique to Start in 2nd Half of 2021</a></div> <div class="field__item"><a href="/news/mozambique-president-filipe-nyusi-lays-foundation-stone-us150m-power-line" hreflang="en">Mozambique: President Filipe Nyusi Lays Foundation Stone for US$150m Power Line</a></div> </div> </div> <div class="field field--name-field-related-reports field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/insights/mozambique-construction-market-report" hreflang="en">Mozambique Construction Market Report</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=384&amp;2=field_comments&amp;3=comment" token="2lm08P11MY96giBhAGanY8Ff_IcL0P8w_cWx1HwaXBU"></drupal-render-placeholder> </section> Fri, 28 May 2021 22:40:14 +0000 Diana Muringo 384 at https://constructafrica.com https://constructafrica.com/news/mozambique-agility-logistics-park-opens-new-park-maputo#comments Mozambique: Ncondezi Energy Restarts Construction of Solar Power Project https://constructafrica.com/news/mozambique-ncondezi-energy-restarts-construction-solar-power-project <span class="field field--name-title field--type-string field--label-hidden">Mozambique: Ncondezi Energy Restarts Construction of Solar Power Project</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Sat, 05/01/2021 - 03:35</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-05/GEN10_resize-min.jpg?itok=PFybQoP7" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The African power development company announced the continuation of construction works for the project, which is planned&nbsp;to be commissioned in June 2021.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>The solar power project is the initial commercial and industrial project for Ncondezi Green Power (NGP), a subsidiary of Ncondezi Energy Ltd, and the first of its kind in Mozambique.&nbsp;Work on the project was stopped at the height of the COVID-19 pandemic crisis.</p> <p>A&nbsp;statement released by the company in March announced&nbsp;the re-mobilisation of construction works at the solar power project.&nbsp;Speaking about the announcement, Hanno Pengilly, Chief Executive Officer at Ncondezi Energy Ltd, stated, “Project construction is set to resume this month with commissioning targeted for June 2021 following the lifting of COVID-19 related force majeure.”</p> <p>The suspension of works led to additional costs of approximately US$500,000. The NGP reported the signing of a six-month bridge loan term sheet to provide this balance to complete the project. President Michael Haworth will cover US$50,000, and Hanno Pengilly will cover US$100,000. The remaining US$350,000 will be covered by Scott Fletcher, who is representing the investors of Ncondezi Energy.&nbsp;</p> <p>“The bridge loan will be provided directly to the company's wholly-owned subsidiary, Ncondezi Green Power, and honors the prior commitments not to dilute shareholders to progress the Company's C&amp;I strategy," Hanno said.</p> <p>The solar power project will be wholly off-the-grid and will have a capacity of 400,000-kilowatts, with about 912-kilowatt hours of battery storage. The solar plant is targeting the delivery of 600-megawatt hours (MWh) per year, and a savings of 517 tonnes of carbon dioxide annually.&nbsp;</p> <p>The project’s 15-year fixed-price offtake agreement set with the contracted revenue of US$3.1 million is in place with annual price escalations. Hanno Pengilly, the CEO, said, "Today's announcement reinforces the company's commitment to the C&amp;I renewable energy sector in Africa."</p> <p>“The project is using leading technology from Tesla, JA Solar, and ABB for the battery pack, solar panels, and inverters, respectively. This is the first of our pipeline of green energy C&amp;I (commercial &amp; industrial) assets to near completion and is expected to provide near-term revenue for the company.</p> <p>“Although the impact of COVID-19 delayed the Project delivery timetable, the demand for sustainable energy solutions that provide increased energy security whilst also reducing costs has become more robust.”</p> <p><em>Photo:&nbsp;Construction of a Solar Power Plant and a High-Voltage Sub-Station (Gorvik | Dreamstime)</em></p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/new-energy-projects-mozambique-tanzania-uganda-and-senegal" hreflang="en">New Energy projects in Mozambique, Tanzania, Uganda, and Senegal</a></div> <div class="field__item"><a href="/news/construction-temane-power-plant-mozambique-start-2nd-half-2021" hreflang="en">Construction of Temane Power Plant in Mozambique to Start in 2nd Half of 2021</a></div> <div class="field__item"><a href="/news/security-and-community-safeguarding-operations-mozambique" hreflang="en">Security and Community: Safeguarding Operations in Mozambique</a></div> <div class="field__item"><a href="/news/mozambique-president-filipe-nyusi-lays-foundation-stone-us150m-power-line" hreflang="en">Mozambique: President Filipe Nyusi Lays Foundation Stone for US$150m Power Line</a></div> </div> </div> <div class="field field--name-field-related-reports field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/insights/mozambique-construction-market-report" hreflang="en">Mozambique Construction Market Report</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=351&amp;2=field_comments&amp;3=comment" token="BNos846HEuZLkqxxd_Jf4nSryAYRdsWHBcQ3xtdNXYU"></drupal-render-placeholder> </section> Fri, 30 Apr 2021 23:35:42 +0000 Diana Muringo 351 at https://constructafrica.com https://constructafrica.com/news/mozambique-ncondezi-energy-restarts-construction-solar-power-project#comments New Energy projects in Mozambique, Tanzania, Uganda, and Senegal https://constructafrica.com/news/new-energy-projects-mozambique-tanzania-uganda-and-senegal <span class="field field--name-title field--type-string field--label-hidden">New Energy projects in Mozambique, Tanzania, Uganda, and Senegal</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/4" typeof="schema:Person" property="schema:name" datatype="">Staff Writer</span></span> <span class="field field--name-created field--type-created field--label-hidden">Thu, 04/15/2021 - 13:13</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-04/AEC2%20%281%29.jpg?itok=BjSMwRHs" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>In the past twelve months, the African energy sector has seen several encouraging developments&nbsp;that have advanced the sustainable development of its natural resources.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>These recent developments&nbsp;have been&nbsp;in the form of both Foreign Direct Investment (FDI) and strategic partnerships.&nbsp;</p> <p>Despite a global downturn in investment in 2020, FDI flows to developing economies accounted for 72% of global FDI, the highest share to date. Given the magnitude of Africa’s oil and gas reserves – not to mention its abundant renewable resource wealth – the continent remains a highly attractive market for inbound investment, which is vital for its growth.</p> <p>Taking Uganda, for instance, which is home to one of the largest onshore discoveries in sub-Saharan Africa. Following multiple petroleum discoveries in Uganda’s Albertine Graben – estimated to contain 6.5 billion barrels of oil, of which 1.4 billion are considered recoverable – foreign investments into the country are expected to reach nearly US$20 billion.</p> <p>Last April, Total E&amp;P Uganda B.V. signed a Sale and Purchase Agreement with Tullow Oil PC, through which Total will acquire Tullow’s entire 33.34% interests in Uganda’s Lake Albert development project and the East African Crude Oil Pipeline (EACOP). Five months later, the Ugandan Government and Total signed a host government agreement for EACOP, representing a significant step toward reaching a final investment decision. The deal pushes along an extended development process – slowed by infrastructure issues, tax complications, then COVID-19 – that not only promises to bring first oil by 2022, but also provides a pathway to monetization via associated transport infrastructure.</p> <p>In addition to developments at Lake Albert, the Ugandan Government has proven its commitment to attracting FDI to its hydrocarbon sector through its second licensing round held last year, as well as its invitation to local and foreign entities to forge joint-venture partnerships with the Government. By prioritizing the establishment of mutually beneficial partnerships, the emerging East African producer aims to facilitate the successful transfer of skills, knowledge and technology, initiating an influx of technical expertise and working capital into the country.</p> <p>“Those who have been locked out from access to opportunity want the same from the energy sector that the energy sectors want from governments. &nbsp;We must not forget local content, local jobs, local opportunities especially for young people and women” Stated NJ Ayuk Executive Chairman of the <a href="https://energychamber.org/">African Energy Chamber</a>.</p> <p>Meanwhile, in West Africa, Senegal has been reaping the rewards of a long-standing partnership with Germany, which has resulted in more than one billion Euros in funding, including significant support for small-scale power plants and renewable energy projects. Holding sizeable potential for solar and wind energy development, Senegal serves as a regional leader in renewable deployment as a means of rural electrification. Indeed, energy is a central component of poverty alleviation across Africa, with electricity access enabling greater independence, clean cooking and potable water, as well as dramatically improving the well-being of individuals, businesses and communities alike. &nbsp;Rural populations are cognizant of the challenges posed by a lack of stable electricity supply – increased urban migration, lack of access to basic services, low economic competitiveness, to name a few – and distributed renewables can represent the fastest and least expensive path to electrification.</p> <p>European interest in Senegal has shed light on and served as a model for co-operation opportunities between renewable-rich African countries and developed partners, which offer cutting-edge technologies and technical expertise to transform raw resources into viable off-grid and mini-grid solutions. &nbsp;</p> <p>Furthermore, while the cost of deploying renewable technology has never been lower, the availability of renewable-focused capital has never been higher. Investment in commercial and industrial solar has demonstrated resilience against the pandemic, continuing to be seen as a safe investment in light of rising utility costs and increasing distribution of both solar and financial technologies. Yet resource potential and low costs of equipment are not enough; Senegal and other resource-rich African nations require active investor interest and strong government support to unlock diversified energy mixes. In turn, a lack of investment represents a pointed threat to the achievement of long-term energy security.</p> <p>“Young people and women have shown their great resilience, and it is our hope we close these deals in the renewable energy sector, Africans can have a sense of some hope that they will be included in the industry contracts and opportunities. It is no longer correct for the African to be the last hired and the first fired” Concluded Ayuk.</p> <p>Moreover, without sustained levels of FDI continuing to move the needle on oil, gas and renewable developments, energy export revenues run the risk of being stranded and resources left undeveloped. For emerging producers like Uganda – as well as Tanzania, Kenya, Mozambique, among several others – this would mean foregoing critical government revenues that could aid in a much-needed, post-COVID-19 economic recovery. FDI is vital to Africa’s growth, and while it may be challenging to procure capital in a tepid global economy, it is even more difficult not to.</p> <p>Yes, COVID-19 has put emerging producers in a tough spot: new exploration is seen as risky, and new producers lack existing assets or low-cost development of marginal fields on which to fall back. However, it is not an option to slow or postpone time-sensitive developments that promise to harness natural resource wealth and make sustainable improvements in standards of living across the continent. Africa requires a sustained flow of investment and has proven time and again that it offers the scope of projects and magnitude of resources that are worthy of foreign capital.</p> <p><em>Photo:&nbsp;President Samia Suluhu Hassan of Tanzania and President Yoweri Museveni of Uganda at signing ceremony of Oil Pipeline deal between both countries and Oil Company Total</em></p> <p><strong>Press Release distributed by APO Group on behalf of African Energy Chamber</strong></p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/government-policy" hreflang="en">Government Policy</a></div> <div class="field__item"><a href="/legal-risk" hreflang="en">Legal &amp; Risk</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/afdb-approves-us120m-tanzania-hydropower-project" hreflang="en">AfDB approves US$120m for Tanzania Hydropower Project</a></div> <div class="field__item"><a href="/news/chinas-ceec-build-500mw-solar-plant-uganda" hreflang="en">China&#039;s CEEC to build 500MW solar plant in Uganda</a></div> <div class="field__item"><a href="/news/vinci-construct-sambangalou-hydroelectric-dam-senegal" hreflang="en">Vinci to construct Sambangalou hydroelectric dam in Senegal</a></div> <div class="field__item"><a href="/news/mozambique-president-filipe-nyusi-lays-foundation-stone-us150m-power-line" hreflang="en">Mozambique: President Filipe Nyusi Lays Foundation Stone for US$150m Power Line</a></div> </div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=353&amp;2=field_comments&amp;3=comment" token="fwxqcCvPNeS4_-brTAMB55Gg_5-S6FSY040ZRrtkjc8"></drupal-render-placeholder> </section> Thu, 15 Apr 2021 09:13:15 +0000 Staff Writer 353 at https://constructafrica.com https://constructafrica.com/news/new-energy-projects-mozambique-tanzania-uganda-and-senegal#comments Construction of Temane Power Plant in Mozambique to Start in 2nd Half of 2021 https://constructafrica.com/news/construction-temane-power-plant-mozambique-start-2nd-half-2021 <span class="field field--name-title field--type-string field--label-hidden">Construction of Temane Power Plant in Mozambique to Start in 2nd Half of 2021</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Sun, 04/11/2021 - 18:14</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-04/SA7_resize-min.jpg?itok=r5_r689p" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Mozambique’s Prime Minister announced that construction of&nbsp;the largest thermal plant in the country since independence will start in Temane, southern Mozambique, in the 2nd half of this year 2021.&nbsp;</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>Prime Minister Carlos Agostinho do Rosário made the announcement in parliament, stating that “This thermal power plant [for electricity production] will be the biggest to be built after the independence and will increase the availability of energy for the needs of economic and social development.”</p> <p>Temane power plant will run on natural gas and have 420 megawatts.</p> <p>Prime Minister Carlos Agostinho’s announcement comes two weeks after the South African state oil company, Sasol, announced that it would increase its investment in the region’s gas fields.&nbsp;</p> <p>Other announcements have also been made about the project. For example, in September 2020, the US Development Finance Corporation (DFC) announced a US$200 million (€168 million) loan for the construction of the plant and a 25 kilometer electricity transmission line in the Inhambane province.&nbsp;</p> <p>By August 2019, the Mozambican government had already signed financing agreements with other international institutions for US$530 million (€445 million) to build the 563 kilometer electricity transmission line which will connect the Temane power plant to Maputo.&nbsp;</p> <p>The Prime Minister also announced the start of the Mozambique-Malawi interconnection line project, linking Matambo in Tete province to the neighboring country, in the second half of this year. This initiative brings to life the regional integration strategy that aims to consolidate Mozambique’s position as an Energy Hub.&nbsp;</p> <p>Prime Minister Carlos Agostinho also announced the conclusion of the implementation of the first 367-kilometer section of the 400 Kilovolt (kV) transmission system by the end of March 2021. This system links Chimuara to Alto Molocué, in the central province of Zambézia.</p> <p>By the end of this year, the 110 Kilovolt transmission line linking Chibabava in Sofala to Vilanculo in Inhambane should be ready. This line has an expansion and reinforcement component of the electricity distribution network.&nbsp;</p> <p>In addition to supplying the industry and other companies, the Mozambican government aims to achieve two million new household connections. This will benefit over 10 million citizens by 2024, raising the number of inhabitants with energy at home from 34% to 64% of the population - 30 million inhabitants.&nbsp;</p> <p><em>Photo: Ankerlig Gas Turbine Power Plant, Atlantis, Cape Town, South Africa (Peter Titmuss | Dreamstime)</em></p> <p>&nbsp;</p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/government-policy" hreflang="en">Government Policy</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/regional-integration-forefront-mozambiques-energy-success" hreflang="en">Regional Integration at the Forefront of Mozambique’s Energy Success</a></div> <div class="field__item"><a href="/news/abb-awarded-contract-electrical-systems-mozambique-lng-project" hreflang="en">ABB awarded contract for electrical systems on Mozambique LNG project</a></div> <div class="field__item"><a href="/news/security-and-community-safeguarding-operations-mozambique" hreflang="en">Security and Community: Safeguarding Operations in Mozambique</a></div> </div> </div> <div class="field field--name-field-related-reports field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/insights/mozambique-construction-market-report" hreflang="en">Mozambique Construction Market Report</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=332&amp;2=field_comments&amp;3=comment" token="de0iWC6fydoJw_ouw8xG_WXlGOxxfSaYKbbn3jaj31I"></drupal-render-placeholder> </section> Sun, 11 Apr 2021 14:14:27 +0000 Diana Muringo 332 at https://constructafrica.com https://constructafrica.com/news/construction-temane-power-plant-mozambique-start-2nd-half-2021#comments Mozambique: President Filipe Nyusi Lays Foundation Stone for US$150m Power Line https://constructafrica.com/news/mozambique-president-filipe-nyusi-lays-foundation-stone-us150m-power-line <span class="field field--name-title field--type-string field--label-hidden">Mozambique: President Filipe Nyusi Lays Foundation Stone for US$150m Power Line</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Thu, 04/08/2021 - 05:07</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-04/nyusizzz.not_-825x510_2_resize-min.jpg?itok=ghni9vbi" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>President Filipe Nyusi has laid the foundation stone for&nbsp;a 400kV high-voltage power line, running across the central province of Zambézia from Chimuara to Alto Molocue.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>This high voltage power line is 366 kilometre long and includes over 850 towers. It is reported to be one of the longest and most ambitious power transmission lines in Africa.</p> <p>The project is estimated to cost US$150 million, and is being funded by the Islamic Development Bank (ISDB).  Completion is scheduled for 2022, with the construction phase expected to create about 1,200 jobs.</p> <p>Along with the two new 400/220 kV substations in Chimuara and Alto Molocue, each with an approximate area of 60,000 m<sup>2</sup>, the Chimuara to Alto Molocue transmission line will comprise the first phase of the Chimuara-Nacala power transmission venture, which will develop 1,000 kilometres of transmission lines linking Mozambique’s central power network to the northern network. Once complete, this venture will provide sustainable solutions to the region, thus empowering the residential communities and continuously growing industries in Northern Mozambique.</p> <p>Engineering consulting firm, Dar, is in charge of design review, project management, and construction supervision on the project.</p> <figure role="group" class="caption caption-img align-center"> <img alt="Mr. Elie Kharrat, Dar's Director of Operations for Mozambique, presenting the project to President Filipe Jacinto Nyusi (Courtesy, Dar)" data-entity-type="file" data-entity-uuid="1df5b83c-22fd-42ca-83a5-da5e7268f3d0" src="/sites/default/files/inline-images/210330065809072_4_resize-min.jpg" /> <figcaption><em>Mr. Elie Kharrat, Dar's Director of Operations for Mozambique, presenting the project to President Filipe Jacinto Nyusi (Courtesy, Dar)</em></figcaption> </figure> <p>While addressing audience at the foundation-laying ceremony, President Nyusi stated that electrification is one of the government’s priorities. This is why the country has just witnessed the launch of groundbreaking work for the line, which is considered the “backbone” of the power grid, which will transport over 400 kilovolts of power. </p> <p>The President said, “The project will increase reliability in access to electricity in Quelimane, Chimuara, Mopeia, Morrumbala, Nicoadala, Mocuba, Alto Molocue and other localities across the province.”</p> <p>In the neighbouring province of Sofala, this electricity project will offer reliable power supply to the districts of Caia and Marromeu and other areas in the northern part of the province. The project will also establish the interconnection between the Mozambican power grid and Tanzania in the mid-term. </p> <p>By the second half of this year, construction works connecting the Mozambican and Malawian grids will begin. The President reaffirmed the government’s commitment to electrify all the administrative posts all over the country in the framework of the programme “Energy for All”.</p> <p>He said, “As we take electricity to each and every household, we are meeting the goal posed by Agenda 2030, which challenges governments to provide electricity to all, over the next ten years.” To fulfil this goal, the government decided to abolish the electricity fee for new domestic consumers’ connections. </p> <p>This decision was implemented last year, and the publicly-owned electricity company, EDM, has established 37,000 new connections. This initiative has benefited approximately 185,000 citizens in just three months. Nyusi said, “This growth is clear evidence of the outcome brought about by elimination of the electricity connection fee.” </p> <p><em>Top Photo: President Filipe Nyusi launching the Transmission Line construction project (Courtesy, Dar)</em></p> <p><br />  <br />  </p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/government-policy" hreflang="en">Government Policy</a></div> </div> <div class="field field--name-field-related-news field--type-entity-reference field--label-above"> <div class="field__label">Related News</div> <div class='field__items'> <div class="field__item"><a href="/news/regional-integration-forefront-mozambiques-energy-success" hreflang="en">Regional Integration at the Forefront of Mozambique’s Energy Success</a></div> <div class="field__item"><a href="/news/abb-awarded-contract-electrical-systems-mozambique-lng-project" hreflang="en">ABB awarded contract for electrical systems on Mozambique LNG project</a></div> <div class="field__item"><a href="/news/mozambique-21-growth-rate-forecast-2021" hreflang="en">Mozambique: 2.1% growth rate forecast for 2021</a></div> </div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=330&amp;2=field_comments&amp;3=comment" token="AuJvwd5fEqCG_f441TrSsjTpYDBYpsy7kJ4lWauUVLc"></drupal-render-placeholder> </section> Thu, 08 Apr 2021 01:07:48 +0000 Diana Muringo 330 at https://constructafrica.com https://constructafrica.com/news/mozambique-president-filipe-nyusi-lays-foundation-stone-us150m-power-line#comments ABB awarded contract for electrical systems on Mozambique LNG project https://constructafrica.com/news/abb-awarded-contract-electrical-systems-mozambique-lng-project <span class="field field--name-title field--type-string field--label-hidden">ABB awarded contract for electrical systems on Mozambique LNG project</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/4" typeof="schema:Person" property="schema:name" datatype="">Staff Writer</span></span> <span class="field field--name-created field--type-created field--label-hidden">Sun, 03/21/2021 - 16:39</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-03/ABB_brought_on_board_to_power_Total_led_Mozambique_LNG_project.jpg?itok=JB4AwU1y" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Global automation and electrification technologies provider, ABB, has been awarded a contract by&nbsp;CCS JV, comprising Saipem, McDermott and Chiyoda,&nbsp;to provide comprehensive integrated and intelligent electrical systems for the Mozambique LNG field which is expected to start production by 2024.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>The Mozambique LNG project is operated by Total, and is&nbsp;aimed at developing gas deposits found off the country's coast. The project has an&nbsp;LNG capacity of approximately 13 million tonnes per annum.&nbsp;Feedgas for the project comes from the Golfinho/Atum field, in Offshore Area 1.</p> <p>A press release issued by ABB stated that the 26-month project will culminate in a significant installed base in Mozambique for ABB and will involve collaboration across multiple ABB divisions and regions, led by ABB in Singapore. Fourteen large onshore electrical houses (e-houses) or prefabricated electrical substation buildings (PESB) – specifically designed for oil and gas applications, will be built by ABB team in Singapore and transported to the Mozambique LNG Project site, ABB further said.</p> <p>ABB will also&nbsp;integrate the project's electrical control and power management system alongside 110kV gas-insulated switchgears (GIS), medium voltage switchgears (33kV, 11kV) and low voltage switchgears.</p> <p>ABB did not disclose the financial value of the contract award. However, at the time of the project sanction in 2019, Wood Mackenzie (stockbrokers and equity analysts) estimated that the Mozambique LNG project would cost <a href="https://www.woodmac.com/press-releases/mozambique-lng-fid/">US$20 billion</a> to develop.</p> <p>Brandon Spencer, President of ABB Energy Industries said, “Winning this project is a testament to ABB’s technical superiority in electrification technologies, as well as our highly skilled management and engineering capabilities. We are proud to be part of Africa’s economic growth story, especially Mozambique.”</p> <p>Johan de Villiers, ABB's Global Vice President, Oil and Gas&nbsp;commented: “We have optimized and customized our solutions to meet the specific technical and capital expenditure requirements of the customer. With ABB as the main original equipment manufacturer (OEM) for electrical systems, Mozambique LNG Project will benefit in terms of cost-efficiency, maintenance, service as well as upgrades and expansions.”</p> <p>According to ABB's press release, the company&nbsp;has operations in over 23 countries, and is a leading supplier of automation and electrification technologies across Africa. The company says it is committed to generating in country value across the region delivering several initiatives aimed at supporting local communities and workforces, as well as those promoting collaboration, social inclusion, and the importance of education.</p> <p><em>Photo: The Mozambique LNG project (ABB | Mozambique LNG)</em></p> <p>Related News:</p> <ul> <li><a href="https://www.constructafrica.com/news/total-confirms-mozambiques-lng-project-track" hreflang="en">Total Confirms Mozambique’s LNG Project is on Track</a></li> <li><a href="https://constructafrica.com/news/mota-engil-wins-eu171m-contracts-mozambique-cote-divoire" hreflang="en">Mota-Engil wins €171m contracts in Mozambique &amp; Cote D'Ivoire</a></li> <li><a href="https://constructafrica.com/product/14">Mozambique Construction Market Report</a></li> </ul> <p>&nbsp;</p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/industrial" hreflang="en">Industrial</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=322&amp;2=field_comments&amp;3=comment" token="dnBcp0mMOZ6mw1Ct6zXIfaro4DyScRlDYLOD45I-W4Q"></drupal-render-placeholder> </section> Sun, 21 Mar 2021 12:39:54 +0000 Staff Writer 322 at https://constructafrica.com https://constructafrica.com/news/abb-awarded-contract-electrical-systems-mozambique-lng-project#comments AfDB purchases bridges to replace infrastructure destroyed in Mozambique https://constructafrica.com/news/afdb-purchases-bridges-replace-infrastructure-destroyed-mozambique <span class="field field--name-title field--type-string field--label-hidden">AfDB purchases bridges to replace infrastructure destroyed in Mozambique</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/4" typeof="schema:Person" property="schema:name" datatype="">Staff Writer</span></span> <span class="field field--name-created field--type-created field--label-hidden">Wed, 03/10/2021 - 16:45</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-03/afdb_mozambique%20bridges.jpg?itok=5vfNdM7U" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>The African Development Bank has finalized the purchase of 26 modular steel bridges to replace infrastructure that was destroyed in weather disasters in Mozambique.&nbsp;</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>The modular bridges are due to be installed in coming months after the appointment of local contractors. The goal is to restore transport connections to the isolated regions of Manica, Sofala, Nampula and Cabo Delgado. An estimated 500,000 people are expected to benefit.</p> <p>With a service lifespan of up to 100 years, the bridges will provide a temporary solution in areas that are vulnerable to extreme weather while the government invests in climate-smart permanent bridges.</p> <p>“We are delighted to be able to deliver this important contribution to Mozambique and respond to the recent climate disasters while investing to building back better,” said Pietro Toigo, the African Development Bank’s country manager for Mozambique. “The Bank will remain at the forefront of the fight to mobilize climate finance for adaptation and contribute to climate justice for the African continent.”</p> <p>The bridges are funded under the Post Cyclone Idai and Kenneth Emergency Recovery and Resilience Program, which was approved in the wake of these two cyclones that struck Mozambique, Zimbabwe and Malawi in 2019 and affected around 3 million people in the three countries.</p> <p>The program is being implemented over four years, ending in December 2023, at a total cost of UA 70.86 million (US$100 million) of which UA 66.01 million is to be paid by the Bank and the remainder by the affected governments. The funding was provided by the African Development Fund, the concessional arm of the African Development Bank Group.</p> <p>João Osvaldo Machatine, Minister of Public Works, Housing and Water Resources, said: “The government of Mozambique is delighted to be working with the African Development Bank to help build resilience to climate and disaster risk management in the country.”</p> <p>Central Mozambique has been hit by extreme climate events in recent years. Cyclones Idai and Kenneth passed through the same region of the country in March and April 2019, also affecting neighboring countries. Disaster struck again with Tropical Storm Chalane in December 2020 and Cyclone Eloise in January 2021.</p> <p>Mozambique is regarded as one of the world’s most climate-stressed countries. In its 2018-2022 Country Strategy Paper for Mozambique, the African Development Bank identifies climate change as a key development challenge, and has directed roughly US$120 million to strengthening the country’s climate resilience.</p> <p><strong>Press Release by&nbsp;African Development Bank (AfDB)</strong></p> <p><em>Photo: Prefabricated Modular Steel Bridge (AfDB.org)</em></p> <p>Related News:</p> <ul> <li><a href="http://www.constructafrica.com/news/total-confirms-mozambiques-lng-project-track" hreflang="en">Total Confirms Mozambique’s LNG Project is on Track</a></li> <li><a href="http://www.constructafrica.com/index.php/news/mota-engil-wins-eu171m-contracts-mozambique-cote-divoire" hreflang="en">Mota-Engil wins €171m contracts in Mozambique &amp; Cote D'Ivoire</a></li> <li><a href="http://www.constructafrica.com/index.php/product/14">Mozambique Construction Market Report</a></li> </ul> <p>&nbsp;</p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/government-policy" hreflang="en">Government Policy</a></div> <div class="field__item"><a href="/legal-risk" hreflang="en">Legal &amp; Risk</a></div> <div class="field__item"><a href="/transport" hreflang="en">Transport</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=302&amp;2=field_comments&amp;3=comment" token="wNnqtKqLMvApCw1DE11sNDEU8kVI9SRvQvrQQNe09rc"></drupal-render-placeholder> </section> Wed, 10 Mar 2021 12:45:08 +0000 Staff Writer 302 at https://constructafrica.com https://constructafrica.com/news/afdb-purchases-bridges-replace-infrastructure-destroyed-mozambique#comments Total Confirms Mozambique’s LNG Project is on Track https://constructafrica.com/news/total-confirms-mozambiques-lng-project-track <span class="field field--name-title field--type-string field--label-hidden">Total Confirms Mozambique’s LNG Project is on Track</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/122" typeof="schema:Person" property="schema:name" datatype="">Diana Muringo</span></span> <span class="field field--name-created field--type-created field--label-hidden">Tue, 03/09/2021 - 01:59</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-03/mzlng_tanks_hero_2%20%281%29_resize.jpg?itok=JxHWKOzo" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>Total, the French oil and gas company, has confirmed that the Liquefied Natural Gas (LNG) project is on-going despite security threats by Islamist terrorists.&nbsp;</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>Patrick Pouyanne, Total's Chief Executive Officer, stated that a security agreement with Mozambique’s government had been signed. This means that the Mozambican government will provide security in the area where the Liquefied Natural Gas (LNG) plants will be built.&nbsp;</p> <p>This area is located in the northern province of Cabo Delgado and has recently suffered attacks from terrorists. These attacks forced Total to withdraw its personnel from the LNG construction site temporarily. An evacuation process of over 9,000 workers from the construction site left less than 1,000 of them in place.&nbsp;</p> <p>This LNG project will be Africa’s most significant foreign direct investment over USD 25bn financed by a consortium. This consortium consists of global energy developers and operators, led by Total alongside Mitsui, Oil India, ONGC Videsh Limited, Bharat Petroleum, PTT Exploration, and Mozambique’s national oil and gas company, ENH.&nbsp;</p> <p>Speaking to the press in Paris, Patrick was confident that the project would go as planned as he assured the Total shareholders that LNG production would start in 2024. He explained that all the offshore and engineering works are still in progress despite the onshore works being suspended. He said, “Stopping for two- or three-months does not mean we can’t hit the 2024 target.”&nbsp;</p> <p>According to Patrick, an action plan has been drawn up for the deployment of security forces to the site, and an agreement with the government to control a perimeter of at least 25 kilometres has been set in place. “It is the government’s responsibility to secure the area for this project to continue. With the deployment of forces, the whole of Cabo Delgado province will be secure,” he said.</p> <p>The project will be Mozambique’s first liquefied natural gas development and draws on its natural gas reserves which are one of the largest in the world. The site is off the coast of northern Mozambique, and the project will initially consist of two LNG trains with a total capacity of approximately 13 million tons per annum.&nbsp;</p> <p>Last year, the African Development Bank (AfDB) finished its bid to co-finance the construction of the integrated Liquefied Natural Gas (LNG) plant. It signed a senior loan of USD 400 million for this significant project. Other parties that bade to provide the requisie financing for the project include a global syndicate of commercial banks, export credit agencies, and development finance institutions.&nbsp;</p> <p><em>Photo: LNG Tanks on the Mozambique LNG Project (mzlng.total.com)</em></p> <p>Related News:</p> <ul> <li><a href="https://constructafrica.com/news/security-and-community-safeguarding-operations-mozambique" hreflang="en">Security and Community: Safeguarding Operations in Mozambique</a></li> <li><a href="https://constructafrica.com/news/mota-engil-wins-eu171m-contracts-mozambique-cote-divoire" hreflang="en">Mota-Engil wins €171m contracts in Mozambique &amp; Cote D'Ivoire</a></li> <li><a href="https://constructafrica.com/product/14">Mozambique Construction Market Report</a></li> </ul> <p>&nbsp;</p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/business" hreflang="en">Business</a></div> <div class="field__item"><a href="/construction" hreflang="en">Construction</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/legal-risk" hreflang="en">Legal &amp; Risk</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=293&amp;2=field_comments&amp;3=comment" token="ePZHwGsbgKcyjsJnmE29waOglj7dJuaK939ngo16VSI"></drupal-render-placeholder> </section> Mon, 08 Mar 2021 21:59:30 +0000 Diana Muringo 293 at https://constructafrica.com https://constructafrica.com/news/total-confirms-mozambiques-lng-project-track#comments Regional Integration at the Forefront of Mozambique’s Energy Success https://constructafrica.com/news/regional-integration-forefront-mozambiques-energy-success <span class="field field--name-title field--type-string field--label-hidden">Regional Integration at the Forefront of Mozambique’s Energy Success</span> <span class="field field--name-uid field--type-entity-reference field--label-hidden"><span lang="" about="/user/158" typeof="schema:Person" property="schema:name" datatype="">Charné Hundermark</span></span> <span class="field field--name-created field--type-created field--label-hidden">Fri, 03/05/2021 - 20:18</span> <div class="field field--name-field-news-image field--type-image field--label-hidden field__item"> <img src="/sites/default/files/styles/news_image_full_width/public/2021-03/fit.jpg?itok=hnTRI38r" width="730" height="450" alt="" typeof="foaf:Image" class="image-style-news-image-full-width" /> </div> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>By prioritizing cross-border cooperation, Mozambique can achieve shared regional goals of widespread electrification and long-term energy security.</p> </div> <div class="clearfix text-formatted field field--name-field-news-contents field--type-text-with-summary field--label-hidden field__item"><p>As one of the leading resource-rich countries in sub-Saharan Africa, Mozambique has the potential to not only significantly advance its own socioeconomic status, but also dramatically boost economic growth throughout the region.</p> <p>According to the World Bank Group, regional integration helps countries to overcome divisions that impede the flow of goods, services, capital, people and ideas. As large-scale energy projects are expected to come online in Mozambique through 2023, the country has observed renewed political commitment to establishing sustainable regional integration with neighboring governments and private operators.</p> <p>By prioritizing cross-border cooperation across its energy value chain, Mozambique is well-positioned to achieve shared objectives, including widespread electrification, establishment of energy security and access to a wider regional market.</p> <p><strong>Hydropower Spurs Regional Electrification</strong></p> <p>Mozambique is one of the top electricity exporters in Southern Africa, largely due to its significant hydropower resources and growing gas-to-power potential.</p> <p>The 2,075 MW Cahora Bassa Hydroelectric Dam in Mozambique represents the largest hydropower facility in Southern Africa and has enabled the country to become a top regional electricity exporter. With only 500 MW procured for domestic use, Mozambique transports the surplus electricity to neighboring South Africa, Zimbabwe and Botswana.</p> <p>Through the establishment of the Southern Africa Power Pool – as well as cooperation agreements with Zimbabwe and South Africa – Mozambique has been able to effectively monetize its hydropower resources through proven demand linkages. What’s more, this form of regional integration has allowed electricity-deficient countries in the region to increase their own electricity access rates and reduce associated costs for their growing populations.</p> <p><strong>Integration Increases Market Accessibility</strong></p> <p>The World Bank Group has posited that fragmentation within sub-Saharan Africa has led to the creation of small, isolated domestic markets characterized by high production costs and low investment. By spearheading regional integration, resource-rich nations such as Mozambique can connect to growing markets within the sub-region, including Tanzania, Zambia, Uganda, South Africa, Rwanda and Angola.</p> <p>As a growing number of African countries re-direct their focus on cleaner sources of energy, such as natural gas, regional integration can ensure that Mozambique’s sizable reserves are effectively monetized. By prioritizing infrastructural connectivity, Mozambique can establish a direct link to viable Liquefied Natural Gas (LNG) markets for export.</p> <p>Moreover, regional integration can lower the cost of getting Mozambican gas to market. By integrating infrastructure and pooling resources, countries can bridge supply, gain direct access to regional markets and utilize both current and emerging infrastructure, in turn significantly reducing project costs for all parties involved. &nbsp;</p> <p><strong>Mozambique Drives Regional Growth</strong></p> <p>According to the World Energy Council, security of supply remains one of the primary drivers of the development of interconnections between countries. Facing challenges such as lack of critical infrastructure, depletion of national energy resources and the need to diversify energy supply, countries such as Zimbabwe and South Africa are turning to Mozambique as a viable energy supply solution.</p> <p>By leveraging these connections, Mozambique can ensure energy success, secure vital foreign currency revenues and establish strong bilateral relations, spurring long-term regional economic growth in the process. Moreover, the World Energy Council notes that the provision of affordable, modern energy to developing countries to meet growing demand will have a domino effect on productivity and macro-economic growth.</p> <p>For international investors, regional integration among developing countries can foster a more attractive investment climate as a result of shared resources, and therefore, increased security and alleviated risk. In fact, regional integration may lead to a greater influx of capital for projects compared to individual domestic developments. This is evidenced by projects such as the African Renaissance Pipeline Project – a 2,600-km natural gas pipeline linking Mozambique’s natural gas to South Africa’s growing demand – and the Temane Natural Gas Project – a collaborative gas-to-power project between the Mozambican Government and South African energy and chemical company Sasol.</p> <p>By drawing on integration opportunities, Mozambique can drive sectoral growth and establish itself as both a regional and global competitor.</p> <p>Still, significant challenges must be addressed if Mozambique is to realize the full scope of its industry growth and success. The lack of adequate complementary policies and regulations may lead to ineffective outcomes and inhibit productive cooperation. Additionally, the World Bank Group suggest that countries may hold varying priorities for regional integration, depending on their connectivity gaps, economic geography or preference for sovereignty in specific areas. By addressing these concerns, Mozambique will be better equipped to monetize its natural gas resources, in which regional integration can ensure maximum project success.</p> <p><strong><em>Article distributed by APO Group on behalf of Africa Oil &amp; Power Conference</em></strong></p> <p><em>Photo: Electricity Lines (Stock Photo)</em></p> <p>Related News:</p> <ul> <li><a href="https://constructafrica.com/news/local-content-rises-top-mozambiques-developmental-agenda" hreflang="en">Local Content Rises to Top of Mozambique’s Developmental Agenda</a></li> <li><a href="https://constructafrica.com/news/mozambique-21-growth-rate-forecast-2021" hreflang="en">Mozambique: 2.1% growth rate forecast for 2021</a></li> <li><a href="https://constructafrica.com/product/14">Mozambique Construction Market Report</a></li> </ul> <p>&nbsp;</p> </div> <div class="field field--name-field-category field--type-entity-reference field--label-hidden field__item"><a href="/taxonomy/term/4" hreflang="en">Main News</a></div> <div class="field field--name-field-sector field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/business" hreflang="en">Business</a></div> <div class="field__item"><a href="/energy" hreflang="en">Energy</a></div> <div class="field__item"><a href="/power" hreflang="en">Power</a></div> </div> <section class="field field--name-field-comments field--type-comment field--label-above comment-wrapper"> <h2 class='title comment-form__title'>Add a comment</h2> <p class="comment-tagline">ConstructAfrica welcomes lively debate, but will not publish comments that are threatening, libellous or abusive.</p> <drupal-render-placeholder callback="comment.lazy_builders:renderForm" arguments="0=node&amp;1=299&amp;2=field_comments&amp;3=comment" token="9Blh5TZhlaPrzZRqN5RUTFnrvyr66bMf2IFE7zcbQBU"></drupal-render-placeholder> </section> Fri, 05 Mar 2021 16:18:42 +0000 Charné Hundermark 299 at https://constructafrica.com https://constructafrica.com/news/regional-integration-forefront-mozambiques-energy-success#comments