Final Investment Decision for Pande/Temane PSA Approved
Maputo, 21 February 2021 - The Government of Mozambique, through the Ministry of Mineral Resources and Energy, announces the approval of the Final Investment Decision (FID) in the amount of 755 million US dollars, reached last Friday, 19 February 2021, for the Project that will develop the Inhassoro, Temane and Temane-East reservoirs, located in the northern area of Inhambane province. This project is under the Production Sharing Agreement (PSA).
The approved investment, which will be implemented by Sasol Petroleum Mozambique (SPM) and its partners, reifies the Government's strategy to transform natural gas into projects that add value to the natural gas discovered and contribute to the acceleration of Mozambique's industrialisation and economic development.
The development phase of this project is scheduled to kick-off in July 2021, subject to Central Térmica de Temane (CTT) financial close and final approval of the monetization and enablement commercial agreements. The project includes the construction of a new light oil and LPG processing unit and employ over 3000 Mozambicans until 2024.
This approval is in line with the Amendment of the Plan of Development approved by the Council of Ministers in 2020, through Resolution no. No. 3/2020, of 29 September, which will enable the integrated development of three natural gas major projects, namely, the production of 23 PJ/a of natural gas to power generation, through the CTT Power Plant, the production of 30 000 tonnes per year of LPG, commonly known as cooking gas, which will supply the national market as well as the daily production of 4000 barrels of light oil for export.
Note that this is one of the crucial projects that will boost the economic development of Mozambique within the Government's policies and Five-Year Plan 2020-2024.
This article was prepared with the assistance of the INP Directorate of Projects and Development. For more information please contact the Communication Unit by email at comunicacao@inp.gov.mz or by phone 21248300.