Matola Gas Company (MGC) and Total will be constructing a $300 Liquified Natural Gas (LNG) Terminal in Matola in the Maputo province, the largest suburb of the capital and the second most populated city in Mozambique.

The Terminal is to interruptedly supply gas to more than 30 industries in the Maputo/Matola region. The construction is a necessity as there is a decline in production from the Pande and Temane onshore gas fields in the Inhambane province.

The terminal will receive gas from the international market before it will later receive gas from the Rovuma Basin, the country’s reserves. French giant, Total, is the operator of the basin and the head of the consortium.

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Excerpts from comments from Bruno Morgado, the Chief Executive Officer of the Mozambique-based MGC on the construction:

“The Pande and Temane gas will come to an end, and it must be replaced by finding other sources.”

“That’s why we are going to push ahead with building an LNG terminal. We have to find a solution so that we can continue supplying gas to industries and to power stations in the southern region of the country.”

“Building an LNG terminal in southern Mozambique is crucial to attract businesses within the region.”

“Otherwise other countries will step in with similar initiatives in which Mozambique will become a victim rather than a protagonist. This could be disastrous for the economy and for ensuring the viability of businesses in energy and in other sectors. If we don’t build an LNG import terminal, South Africa may advance before we do, and Mozambique could be squeezed out.”

As predicted by many analysts and with the glaring pieces of evidence, with time, Mozambique will be the continent’s hub for LNG. It will also attract lots of investment in the country, as we have seen with Japan already earlier this month , which will boost the economy and create a lot of opportunities for Mozambicans.