U.K.-based energy solutions provider Great Lakes Africa Energy Limited (GL Africa Energy) has finalized the concession agreement for the financing and operation of the 250 MW Nacala Liquefied Natural Gas (LNG) power plant in Mozambique. Representing a major infrastructure project, the power plant will significantly improve electrification in the northern province of the country, while promoting gas-to-power in southern Africa.

The deal was signed by H.E. Ernesto Max Elias Tonela, Minister of Mineral Resources and Energy, and Michael Kearns, GL Africa Energy Director, initiating the start of the $400 million project. Development of the project will be implemented in three stages, with the first comprising 50 MW capacity at a cost of $90 million – expected to be completed in 16 months. Thereafter, the second and third stages will add an additional 200 MW online and will be completed in less than 12 months.

As Mozambique pursues accelerated LNG developments, the Nacala LNG power plant will be instrumental in expanding gas-to-power utilisation in southern Africa. By boosting electrification both domestically and regionally through the South African Power Pool, as well as reducing the reliance on heavy fuels, the project represents a milestone in the country’s energy growth.