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MOL and Karpowership to develop LNG-to-Powership project in Mozambique

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LNG Industry,

Mitsui O.S.K. Lines, Ltd (MOL) and Karpower International B.V have agreed to jointly carry out the first LNG-to-Powership project under the co-brand KARMOL in Mozambique, and for this purpose jointly own and operate an FSRU and a Powership®.

Ahead of this announcement, MOL and Karpowership – a subsidiary of Karadeniz Holding A.S. – jointly made a presentation in the TICAD ? conference, introducing the concept of the LNG-to-Powership solution and outlining the Mozambique Project.

According to the statement, the LNG-to-Powership project consists of an FSRU delivering regasified LNG, and the Powership® receiving regasified LNG in order to produce electricity, which is subsequently provided to Electricidade de Moçambique (EDM), the Mozambican National Power Utility, through the electricity connection and transmission facility.

As announced on 29 March 2019, the FSRU is currently being converted from an existing LNG carrier. The Powership, meanwhile, is currently operating with heavy fuel oil in Nacala, but, in accordance with the prior arrangement with EDM, it will be switched to operation with LNG after the FSRU delivery.

Max Tonela, Minister of Mineral Resources and Energy of Mozambique, said: “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. This project does it through LNG, a critical fuel for Mozambique’s future.”

In the last few years, Mozambique has seen rapid economic growth, which requires an increased supply of stable and affordable electricity. KARMOL’s LNG-to-Powership solution, with a power generation capacity of 120 MW, will provide such a supply of electricity for the people of Mozambique, and will also provide critical infrastructure for the use of LNG within Mozambican territory. When completed, the project will be the first LNG-to-power solution and FSRU project in Eastern and Southern Africa.

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