EDM is the public operator for Mozambique’s electricity sector and is 51%-owned by the Joint Venture. The project will allow EDM to develop expertise in structuring public-private partnerships. This will be invaluable for its future investments in the field of power generation and transmission.
Sasol New Energy, a wholly-owned subsidiary of SASOL Ltd, owns 49% of the capital. Sasol Ltd is one of the world leaders in petrochemicals. Sasol is listed on the New York and Johannesburg Stock Exchanges (market cap. of USD 19bn). Sasol Ltd has a stable BBB rating (S&P) and stable Baa1 (Moody's).
The power plant is located in Ressano Garcia, with the Temane-Secunda gas pipeline connecting the gas fields to South Africa.
The project will supply Southern Mozambique, the country’s largest consumption center. The power will be transferred to Maputo via an existing 275 kV line operated by EDM.
The project will improve energy supply in Mozambique, particularly in the city of Maputo-Matola, and will replace imports from South Africa with a domestic energy source.
CTRG will generate 1,200 GWh of electricity a year at a competitive price (9 US cents/kWh vs. 15 US cents/kWh for energy produced for domestic needs and vs. 23 US cents/kWh for energy imported from South Africa).
In addition, the project will support the employment of some 300 people for the construction and operation of the power plant.
It will also generate over USD 25m of government revenues every year.