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Globeleq in talks with investors to restructure Mozambique gas project

By Reuters News

CAPE TOWN, Nov 11 (Reuters) - Independent power producer Globeleq expects to finalise a restructured financing package with investors for its $660 million gas project in Mozambique by year-end, a senior official said on Wednesday, after destructive weather and political violence delayed construction and increased costs.

  • The 450 megawatt gas-fired Temane plant is expected to be fully operational in 2028, three years behind schedule, said Samir Sale, Globeleq's country managing director in Mozambique

  • A new Turkish contractor, ENKA, was appointed last December after two separate cyclones damaged equipment and flooded the site, while post-election violence across the southern African country in 2024 also contributed to delays

  • Globeleq - jointly owned by British International Investment and Norway's Norfund - is in talks with project partners, shareholders and lenders, including the International Finance Corporation (IFC), OPEC Fund for International Development and the US International Development Finance Corporation (DFC), on the revised financing arrangements, Sale told Reuters

  • The Mozambique government in September agreed additional measures, such as tariff adjustments, to support the Temane gas-fired plant but did not provide further details

  • Sale said that once the project, which will source feedstock from Sasol's gas fields in Mozambique, is operational they will consider a 450 MW expansion in phase 2

  • The project is located in Inhambane province where the government is keen to develop a gas and power hub, and is an integral part of efforts to broaden electricity access

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