Mozambique’s state-owned utility, Electricidade de Moçambique (EDM), is in advanced negotiations with Karpower, a global leader in floating power plant solutions, to establish a significant floating LNG-to-power facility. The proposed project, which could deliver up to 500MW of electricity, involves the deployment of a powership—a floating power plant—alongside a floating regasification unit (FRU). This setup is intended to supply electricity to both domestic consumers and the regional Southern African Power Pool (SAPP), a crucial grid network serving several Southern African nations.
This prospective development aligns with EDM’s broader strategy to leverage Mozambique’s substantial natural gas reserves for electricity generation. As part of Mozambique’s ongoing efforts to diversify its energy mix and expand its power generation capacity, the LNG-to-power initiative is seen as a critical component in meeting growing energy demands both within the country and across the region.
The floating power plant would be strategically positioned along Mozambique’s coastline, where it can access liquefied natural gas (LNG) for conversion into electricity. The FRU would play a key role in this process by converting LNG back into its gaseous state before it is used as fuel in the powership’s generation units. The electricity produced would then be transmitted through existing and upgraded infrastructure to supply both Mozambique’s domestic grid and neighboring countries connected to the SAPP.
Despite the promising outlook, there are significant uncertainties regarding the availability of feedstock for the project. Mozambique’s onshore LNG megaprojects, which are expected to be the primary source of natural gas for the floating plant, have faced delays due to a combination of security challenges in the Cabo Delgado region and broader market conditions. These delays have raised questions about the timing and reliability of gas supply to the floating LNG-to-power facility.
EDM and Karpower are reportedly working on contingency plans to ensure a steady supply of LNG in the interim, potentially through imports or sourcing from other available reserves. However, the successful and timely execution of the project remains contingent on the resolution of feedstock issues and the stabilization of production timelines for Mozambique’s LNG projects.
The project, if realized, would not only enhance Mozambique’s energy security but also position the country as a significant power supplier within the Southern African region. It would also demonstrate the flexibility and scalability of floating power plants and regasification units in rapidly addressing energy shortages, particularly in regions with abundant natural gas resources but limited onshore infrastructure.
As discussions progress, stakeholders are closely monitoring the situation, with the hope that the project will move forward and contribute to the region’s long-term energy stability and economic growth.
