The President of Mozambique, Daniel Chapo, addressed the inauguration ceremony of the new Integrated Processing Plant (IPP) in Inhambane, located in the southern part of the country. The event was also attended by South African President Cyril Ramaphosa.
Daniel Chapo highlighted that the new platform, a result of the Production Sharing Agreement (PSA) between Mozambique and the South African oil company Sasol, involving an investment of $1 billion (866 million euros), marks the country’s entry into an era of local transformation, industrialization, and economic sovereignty.
The PSA project envisions the annual production of 53 million megajoules of natural gas, which will support the implementation of the Temane Thermal Power Plant (CTT), alongside the daily production of 4,000 barrels of light oil, according to Mozambican government data.
The CTT will have the capacity to produce 450 megawatts of electricity, and the processing unit will produce 30,000 tons per year of Liquefied Petroleum Gas (LPG).
“We are transforming gas into development, gas into industry, gas into jobs, and gas into dignity for the Mozambican people. This signifies the foundation of Economic Independence,” said Chapo, reiterating that the initiative moves away from the idea of the country exporting raw materials and importing finished products, without leaving anyone behind.
The leader stated that with the new industry, Mozambique takes a “decisive step” in actualizing the strategic vision established for the country, which focuses on “local transformation of natural resources, generating more value within the national territory, and strengthening energy sovereignty.”
The new plant will enable the country to reduce its dependency on imports of this product by 70%, increase the availability of fuels in the domestic market, and create new business and employment opportunities in the energy sector, as stated by the Mozambican government.
“We are inaugurating this in the year Mozambique celebrates 50 years of national independence—a half-century of building freedom, dignity, and sovereignty, a decisive milestone in establishing the foundations of economic independence, the main objective of the current governance cycle,” noted Chapo.
For the head of state, the implementation of the infrastructure construction project, in cooperation with South Africa’s Sasol, which announced at the beginning of November that it had conducted a trial shipment of the first batch of LPG, known as domestic gas, in Mozambique, proved that a responsible partnership can generate transformative results for the economy and local communities.
“This undertaking demonstrates that when there is discipline, responsibility, competence, and mutual respect, the country advances, Mozambique advances, and the people advance. It is important to note that a partnership is only valid when it serves the national interest,” explained the President of Mozambique, adding that “production is only relevant when it transforms people’s lives, and energy only makes sense when it reaches homes, factories, schools, hospitals, and local communities.”
According to Daniel Chapo, the project is part of the broader vision for the structural transformation of the national economy, ensuring gas for industry, petrochemical expansion, fertilizer production, energy for agro-transformation, modern industrial corridors, and creating qualified jobs, especially for young people and women.
The first stone of the facility was laid in 2022, and the Mozambican government had initially estimated production to start in 2024, later postponed to March, and then further delayed to November this year.
