Gigajoule – the South African energy company – expects to reach financial close for its $550 million Matola Liquefied Natural Gas (LNG) project in Mozambique by the end of 2022.
Following financial close and the construction of the import terminal, the project expects to receive first gas shipment by mid-2025.
The Matola project, which comprises a permanently moored floating storage and regasification unit, is being developed by Gigajoule in partnership with French oil and gas major TotalEnergies.
The terminal will be connected to the 865 km Rompco gas pipeline – linking Mozambique’s gas rich Pande and Temane fields to Sasol’s operations in South Africa – and has the potential to become South Africa’s first major LNG supplier. At a time when the country is focused on expanding the share of natural gas in its energy mix, the project will be instrumental.
“…we think we’ve got full subscription from all the major commercial banks in South Africa and export credit agencies,” said Jurie Swart, the CEO of Gigajoule, adding, “Our realistic case is that construction for the LNG import facility will start in January next year and first gas is seen mid-2025.”
Currently, South Africa has an annual gas supply shortfall of close to 170 petajoules, with supply coming largely from Sasol’s Pande and Temane fields in southern Mozambique. Gigajoule is also in the middle of constructing a 2,000MW gas-to-power plant in Mozambique.