Funding and technicalities agreed for Mozambique gas plant
Debt funding and technical solutions have been secured for the Central Termica de Temane (CTT) project in Mozambique, which aims to become operational in Q4 2021.
CTT will be a 450MW gas-fired power plant supplying low cost, reliable power to EDM through a 25-year tolling agreement. Gas supply will come from the PSA concession at the Pande-Temane Inhassoro fields operated by Sasol Petroleum Mozambique Limitada. Globeleq is the lead developer along with its partners EDM, Sasol Africa Limited and eleQtra.
CTT will receive funding of up to US$200 million from the US International Development Finance Corporation (DFC) and up to US$50 million from the OPEC Fund for International Development (OPEC Fund) once execution of the loan agreements and other closing conditions have been finalised. The International Finance Corporation is expected to provide the balance of the required debt financing and is in the process of finalizing its approvals. Together with the gas supply and related value chain investment, the entire project will see an investment in excess of US$2 billion.
Spanish contractor TSK has been selected to design and construct the power plant, which will use efficient and proven Siemens gas turbines. TSK has extensive experience in designing similar-sized combined-cycle power plants utilising Siemens turbines.
Around 40 per cent of Mozambique people have access to electricity through the grid or mini systems, according to the IEA. Countries with electrification rates of less than 80 percent consistently suffer from reduced GDP per capita, reports McKinsey.
"Mozambique faces one of the lowest electrification rates in the world," said Edward Burrier, DFC Executive Vice President for Strategy. "This project will reduce the cost of electricity, increase power generation, and address a critical development challenge for the people of Mozambique. We are proud of our partnership and look forward to this important project moving forward."
Abdulhamid Alkhalifa, Director-General of the OPEC Fund, said it marks the third project it has co-financed in Africa where Globeleq is the sponsor. "Our private sector loan facility complements a public-sector term loan we recently extended to Mozambique's government to finance 563 km of associated transmission infrastructure. Once completed, the Temane initiative will increase the supply of efficient and affordable energy to households, businesses and industries contributing to social and economic development in Mozambique and the region."
Mike Scholey, CEO of Globeleq, said: "The Temane initiative is an absolute regional game-changer. It will ensure a reliable and affordable power supply - crucial elements for economic and social development. CTT will provide electricity access to millions of people in the region."
CTT will anchor the development of the 563km high-voltage transmission line and associated transmission infrastructure (the Temane Transmission Project or TTP). An aerial view of the capital Maputo is pictured.
Global Offshore rebrands Enelift and invests in global hubs
Global Offshore has rebranded Enelift and will invest "a seven-figure sum" in establishing new support hubs in Houston, Dubai, Singapore, Perth and the Caspian during the next six months.
The investment will cover oil, gas and renewables, mainly concentrating on manufacturing capability with associated R&D, as well as in stock held in the hubs.
The company’s flagship Hinge Lok technology provides aluminium, non-welded light weight transportation cradle for casing and tubing. Enelift now plans to enhance its offering by augmenting its existing solutions with robotics and remote operational and training technology, which will reduce manpower for handling offshore equipment that is transported and stored using the Hinge Lok system.
Enelift is partnering with "a Japanese robotics company" and the technology will be trialed with "a Norwegian operator on a Norwegian drilling rig", according to a statement.
Operating from its bases in Aberdeen, UK and Esbjerg, Enelift was founded by 35-year industry veteran and Managing Director Paul Brebner 10 years ago to offer the offshore energy industries safe, reliable and efficient storage and transportation of equipment.
The expansion plans are bolstered by the appointment of Jim Clark of the Craigendarroch Group to Chairman, and Adam Maitland to Non-Executive Director. Maitland is the Managing Director of Hutcheon Mearns IF, and brings his wealth of expertise in the field of corporate finance.
Brebner said Enelift may be a new name in the market, but the experience it brings is "industry renowned".
"Our solutions are underpinned by safety that enables inefficiencies and their associated costs to be eradicated – meaning operational personnel can focus doing what they do best, safely. We remain committed to providing the safest storage and transportation solutions for equipment in the sector as we grow our global operations," he said.
Clark said the market is changing and its solutions fully support customers’ economic and safety aspirations.
"We are very well placed to take full advantage of increasing opportunities in the Middle East, Africa, Far East and Americas. Safety is our absolute commitment to our customers and our support hubs will facilitate this. Aligning our identity to our entire offering ensures that we will drive our expansion through new products and global support sites across the rest of this year."