Mozambique LNG project financing almost complete - TotalEnergies
Photo courtesy: Galp
The Portuguese energy company GALP-Mozambique on Wednesday in the southern city of Matola, inaugurated a new production line that will significantly increase its capacity to bottle LPG gas for domestic use.
The line and its associated work cost 12 million US dollars and took a year to construct. Large tanks have been installed to hold 60,000 cubic metres of liquid fuel and 6,000 cubic metres of LPG, which will arrive by sea and be distributed by tanker lorries, trains, and pipelines.
The new production line will enable GALP to fill 1,200 11-kilo bottles of cooking gas per hour and a further 20 of the larger 45-kilo bottles.
Speaking during the official opening, the Minister of Public Works, Joao Machatine, said that the increase in filling capacity will make possible the mass use of cooking gas leading to a reduction in the use of charcoal which has contributed to high rates of deforestation with negative impacts on climate change.
The minister spoke about the national impact of the new production line, pointing out that “with this unit, the country goes from a daily capacity of 27,000 bottles to 33,754 bottles, an increase of 25 per cent, totalling just over one million monthly fillings. This has a huge impact because the gas will reach more families, improve the economy, preserve forest resources, and allow for a reduction in the emission of carbon dioxide”.
Speaking on behalf of the company, the Chair of Galp Mozambique, Paulo Varela, said that when the new filling unit is operating at full capacity shortages of bottled gas on the market will be a thing of the past.
He added, “this undertaking has ensured greater strategic independence for the country in terms of LPG supply. It will be possible for us to receive larger loads, with greater economies of scale, while increasing strategic reserves to ensure that there is no disruption to supply”.
Varela also stressed that Mozambique is a key market for private investment due to its strategic location that allows for the development of business with other countries in the southern African region. He pointed out that “this infrastructure will create the basic conditions so that Galp can, from Mozambique, boost its presence in neighbouring countries”.
The Secretary of State for Maputo province, Victoria Diogo, added that the investment will strengthen the supply of cooking gas in the province and the entire southern region, contributing to the creation of more jobs.
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