A joint venture between Japan’s Mitsui OSK Lines and Turkey’s Karadeniz Holding will carry out a new LNG-to-power project using a floating storage and regasification unit and a Powership to provide electricity to Mozambique
It is the first LNG-to-Powership project announced by the companies under the Karmol joint venture formed earlier this year. This LNG-to-Powership project will use a floating storage and regasification unit (FSRU) to deliver regasified LNG to the Powership – a floating power station – to produce electricity for the grid for Electricidade de Moçambique (EDM), the Mozambican national power utility.
As announced in March 2019, the FSRU is being converted from an existing LNG carrier. The Powership is currently operating with heavy fuel oil in Nacala, but as agreed with EDM, it will operate with LNG after the FSRU delivery. Karpowership owns a fleet of 20 Powerships.
"This project contributes to our national strategy of increasing the availability and reducing the costs of fuel to generate electricity for industrial development and energy access,” said Mozambique Minister of Mineral Resources and Energy Max Tonela. “This project does it through LNG, a critical fuel for Mozambique’s future."
Rapid economic growth in Mozambique has increased the need for stable and affordable electricity. The joint venture said Karmol’s LNG-to-Powership solution with power generation capacity of 120 MW will provide critical infrastructure for using LNG in Mozambique. When completed, the project will be the first LNG-to-Power solution and FSRU project in eastern and southern Africa.