Africa-Press – Mozambique. The Mozambican President said on Wednesday that the new LPG plant, inaugurated in Inhassoro, Inhambane province, will consolidate the country’s position as the “energy hub” of Southern Africa, fitting into a broader vision of national economic transformation.
Mozambican Head of State, Daniel Chapo, spoke during the inauguration ceremony of the new Integrated Processing Factory (FPI) in Inhambane, in the south of the country, which was also attended by South African President Cyril Ramaphosa.
Daniel Chapo stated that with this new platform, resulting from the Production Sharing Agreement (PSA) between Mozambique and South African oil company Sasol, involving an investment of US$1 billion (€866 million), the country is entering an era of local transformation, industrialisation and economic sovereignty.
The PSA project foresees the production of 53 million megajoules of natural gas per year, which will enable the operation of the Temane Thermal Power Plant (CTT), and the production of 4,000 barrels of light oil per day, according to Mozambican government data.
The CTT will have the capacity to produce 450 megawatts of electricity and the processing unit 30,000 tonnes annually of liquefied petroleum gas (LPG).
“We are transforming gas into development, gas into industry, gas into jobs and gas into dignity for the Mozambican people. This is what it means to build the foundations of Economic Independence,” said Chapo, reiterating that the aim is to “leave behind, without leaving anyone behind,” the model of a country that exports raw materials and imports finished products.
The president affirmed that with this new industry, Mozambique is taking a “decisive step” in realising the strategic vision that has been developed for the country: to “locally transform (…) natural resources, generate more value within national territory and strengthen energy sovereignty.”
The new unit will allow the country to reduce its dependence on imports of this product by 70%, increase the availability of fuels on the domestic market, and generate new business and employment opportunities in the energy sector, according to the Mozambican government.
“We hold this inauguration in the year Mozambique celebrates 50 years of national independence—a half-century of building freedom, dignity and sovereignty, a decisive milestone in establishing the foundations of economic independence, the central goal of the current governance cycle,” Chapo noted.
For the Head of State, the implementation of the infrastructure project, in partnership with South African Sasol, which announced earlier this November that it had completed the experimental loading of the first batch of LPG, known as domestic gas, in Mozambique, proved that responsible partnerships can deliver transformative results for the economy and local communities.
“This project shows that when there is discipline, responsibility, competence and mutual respect, the country moves forward, Mozambique moves forward and the people move forward. It is important to emphasise that a partnership is only valid when it serves the national interest,” explained Mozambique’s President, adding that “production only matters when it transforms people’s lives and energy only makes sense when it reaches homes, factories, schools, hospitals and local communities.”
According to Daniel Chapo, the enterprise fits into the broader vision of structural transformation of the national economy, by securing gas for industry, petrochemical expansion, fertiliser production, energy for agro-processing, modern industrial corridors, and the creation of qualified jobs, particularly for young people and women.
The foundation stone for the unit was laid in 2022 and the Mozambican government had previously estimated production would begin in 2024, later postponed first to March and then to November of this year.
