Mozambique: Sasol launches Compressed Natural Gas Fund

Login

Register

http://www.clubofmozambique.com/

Mozambique: Sasol launches Compressed Natural Gas Fund

6:00 CAT | 06 May 2022

Photo: Sasol

In line with its continued strategic commitment to promote the monetisation of gas in country, Sasol, in an agreement signed with the National Investment Bank, Banco Nacional de Investimentos (BNI) and the Ministry of Mineral Resources and Energy in Inhambane launched a US$ 5 Million Fund for the Development and Expansion of Compressed Natural Gas (CNG) today, 6 May 2022.

The US$ 5 Million Fund is secured by Sasol and BNI is the entity responsible for managing this line of funding. This project aims to promote and support the development of Compressed Natural Gas sector in Mozambique by financing initiatives throughout the country.

The CNG credit line offers special conditions for those interested in converting their vehicles to natural gas, as well as for fuel supply stations that wish to equip their establishments. Within the scope of this project, individual and business projects of CNG Transport Systems, infrastructures and conversion components to natural gas will also be financed.

Economic agents (individuals, companies and SMEs) operating natural gas-powered infrastructures, vehicles and parts, as well as holders of operating licenses and other projects related to the development and expansion of CNG in Mozambique are eligible for financing.

Speaking during the launch event, the Minister of Mineral Resources and Energy, Carlos Zacarias, reaffirmed that Mozambican Government in supporting this initiative to contribute to the increase of gas monetisation in the country and confirming Mozambique’s commitment with the energy transition agenda.

Ovídio Rodolfo, Sasol VP and Mozambique Country Management, said that natural gas is one of the riches of Mozambicans and its use will contribute to the reduction of transport costs, since it is a cheaper and a more environmentally friendly fuel. On the other hand, Ovídio believes that the use of CNG will allow the improvement of the balance of payments and the reduction of the level of carbon emissions.

At a time when fuel prices have been fluctuating, the finance facility is expected to increase the number of natural gas-powered vehicles, mainly in public transport fleets.

This initiative, which is part of Sasol’s contribution to the country’s energy matrix, is in addition to other downstream benefits of natural gas such as (1) cooking gas and (2) power generation through the Temane Thermoelectric Power Station (the old one), Kuvaninga Thermoelectric Power Station, Ressano Garcia Thermoelectric Power Station (CTRG), Maputo Thermoelectric Power Station (CTM), Gigawatt Thermoelectric Power Station, which produce close to 500 MW of power, and the new Temane Thermoelectric Power Station which will produce 450 MW of electricity.

Source: Sasol Mozambique / Press Release