MOL and Karadeniz Holding A.S. (Karadeniz) announced that MOL and Karpower International B.V. (Karpowership), a subsidiary of Karadeniz, have agreed to jointly conduct the first LNG-to-Powership project under the co-brand Karmol in Mozambique.
Under the project, the companies will jointly own and operate an FSRU and a Powership.
This LNG-to-Powership project will include the collaborative operations of the FSRU to deliver regasified LNG and the Powership to receive regasified LNG in order to produce electricity, which is then provided to Electricidade de Moçambique (EDM), the Mozambican National Power Utility, via the electricity connection and transmission facility.
Now, the FSRU is being converted from a current LNG Carrier. The Powership is operating with HFO in Nacala, but according to the prior arrangement with EDM, it will be switched to operation with LNG after the FSRU delivery.
Commenting on the project, Max Tonela Minister of Mineral Resources and Energy of Mozambique, noted:
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 years Mozambique has seen fast economic growth, which in order to be maintained, it requires the increased supply of stable and affordable supply of electricity. Karmol’s LNG-to-Powership solution with power generation capacity of 120MW will also create a supply of electricity for the people of Mozambique and, provide crucial infrastructure for the use of LNG within Mozambican territory.
Once completed, the project will be the first LNG -to Power solution and FSRU project in Eastern and Southern Africa.