HomeIndustry SectorsFinance and PolicySA and Mozambique in gas power deal

SA and Mozambique in gas power deal

11 June 2012 – Emergency and temporary power specialist Aggreko has secured a US$250 million deal to set up a plant supplying both South Africa and Mozambique. The company and South African joint venture partner Shanduka signed power purchase deals with South Africa’s Eskom and Electricidade de Mocambique (EDM) to supply electricity from the third quarter of this year to July 2014.

Aggreko will build gas interconnections, a substation and a 275 kV transmission line at the Ressano Garcia border between South Africa and Mozambique. Part of the infrastructure will be transferred to EDM at the end of the contract.

The plant will be powered by natural gas from the Temane fields in Mozambique which has been given to the country’s government as a royalty by the field’s operator Sasol. Eskom will purchase 92 MW of the supply from the 107 MW gas fired power plant and EDM the remaining 15 MW.