TotalEnergies Plans $3.2B Gas Import Terminal in Mozambique
TLDR
- TotalEnergies SE approves construction of LNG import terminal in Mozambique to avert South Africa gas shortage.
- Matola project near Maputo to start delivering gas by end of 2027, with capacity of 2.5 million tons annually.
- South Africa's Industrial Gas Users Association racing to secure agreements to prevent potential gas shortages impacting industrial operations.
TotalEnergies SE aims to approve the construction of a liquefied natural gas (LNG) import terminal in Mozambique by next year, potentially averting a looming gas shortage in South Africa. The Matola project, near Maputo, is expected to start delivering gas by the end of 2027, coinciding with the termination of current supplies from Sasol’s Mozambique fields to South Africa.
The Matola terminal will have the capacity to import 2.5 million tons of LNG annually, positioning it as a crucial supplier for South Africa’s industrial gas users, including companies like Anheuser-Busch InBev SA/NV and ArcelorMittal. This project, developed in partnership with Gigajoule, is separate from TotalEnergies’ export plans in Mozambique’s Cabo Delgado province.
South Africa's Industrial Gas Users Association (IGUA) is racing to secure gas offtake agreements by December to ensure the project proceeds on schedule, as delays could lead to gas shortages that may impact industrial operations. Gigajoule in 2019 estimated the project cost at $3.2 billion, including a gas power plant.
Key Takeaways
The Matola LNG terminal is a critical project for securing gas supplies for South Africa as the country transitions from coal dependency to cleaner energy sources. With existing gas supplies from Mozambique set to expire by 2027, the import terminal offers a vital solution to avoid potential gas shortages. However, timing is key, and any delays in the project could have significant consequences for South Africa’s industrial sector.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.