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The cabinet decided recently, according to a statement released at the end of the weekly meeting on the approval of the decree extending, for 15 years, the concession contract for the gas pipeline, owned by Matola Gás Company (MGC), for the transport of natural gas from Ressano Garcia to the city of Matola, southern Mozambique.
The Mozambican government has extended the concession to the MGC company for the 100-kilometre gas pipeline between Ressano Garcia, on the border with South Africa, and Matola, with investments of €280 million for 15 years.
The cabinet decided recently, according to a statement released at the end of the weekly meeting on the approval of the decree extending, for 15 years, the concession contract for the gas pipeline, owned by Matola Gás Company (MGC), for the transport of natural gas from Ressano Garcia to the city of Matola, southern Mozambique.
The communiqué states that the extension of this concession will allow the implementation of new infrastructures and connect the existing facilities” of MGC “to receive volumes of Liquefied Natural Gas (LNG), regasified by the Beluluane Gas Company (BGC). On the other hand, it will “allow new investments estimated at USD 300 million [almost €280 million], starting in 2024,” the statement reads.
Matola Gas Company, founded in 2004 on the outskirts of Maputo, presents itself as a Mozambican company “dedicated to the transport, distribution, and commercialization of natural gas produced in Mozambique”, operating a pipeline of around 100 kilometers with a capacity of eight million gigajoules of natural gas per year. The pipeline concessioned to MGC starts in Ressano Garcia, where it is connected to the main pipeline from the Pande and Temane exploration fields to South Africa, with a compression station 75 kilometers later in the Malhampsene area.
The gas is currently supplied to Mozal’s aluminum factory, one of the country’s largest industries, the Cimentos de Moçambique cement factory, and 18 other companies located in Machava and Matola (Maputo province), “which have opted to use cleaner and more efficient local energy in their production processes instead of other imported fuels”, explains the company.MGC was formed by national capital, through Empresa Nacional de Hidrocarbonetos (ENH) and private investors, and by foreign capital, through South Africa’s Gigajoule International.
The Mozambique Zimbabwe Pipeline Company (CPMZ), a public-private partnership that operates the fuel pipeline linking the central Mozambican port of Beira to Feruka in Zimbabwe, intends to increase, over the coming years, its fuel pumping capacity from the current three million cubic meters a year to five million.
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Studies are currently underway to build two fuel pumping stations in Nhamatanda district, in Sofala province, and Messica, in Manica. The work is expected to take two years.
