The finalizing for the construction of a natural gas power generation facility in Chokwe, in the province of Gaza, has begun. The 40 MW plant is an initiative by Kuvaninga Energia, which has just executed the concession agreement with the Ministry of Energy.
(Voiceover) The signing of the electricity production and purchase contract via natural gas was authorized under the strategic use plan by the government for gas coming from the Temane fields. The plant, being installed in Chokwe, will have an installed capacity of 40 MW. The plant will cost $98.6 million dollars, of which, $10 million will be required for the transmission line and Lionde substation upgrade.
To achieve the project, the government of Mozambique provided a concession to royalty gas from Temane.
“With the signing of this contracting, KDM is pleased to announce that we will be able to proceed with this project and will soon be able to bring tangible results so that our country may too benefit from a project (Temane gas field exploration) of this nature. We recognize that the energy from our plant is but a small part of the national power grid but hope it will be a positive contribution to EDMs efforts.”
–Safura Conceicao, Director of KDM
“I want to take this opportunity to acknowledge all the partners of this project, the investors, and especially Kuvaninga and its partners for the effort and perseverance demonstrated through many moments of great uncertainty and difficulties that could have resulted in the collapse of the project. But they did not give up and that effort is what allows us to be where we are today. After this milestone we will move on to the financial close and mobilization to begin construction.”
-Ex. Salvadore Namburete, Minister of Energy for Mozambique
EDM will be the only client of the project via a separate agreement between the two parties. Through this contract, the government will provide gas to the power plant to generate the 40 MW. It is expected that commercial operation of the plant will begin in December 2014.