Mozambique Initiates Local LPG Production

Mozambique has started producing and distributing liquefied petroleum gas LPG for the domestic market. The Inhassoro processing plant in Inhambane province shipped the first commercial batch. This move marks the country’s initial step toward local LPG production.

Sasol, the energy company responsible for managing the first LPG batch, operates the $1 billion Inhassoro and Govuro gas project under a production-sharing agreement with the Mozambican government. Consequently, the integrated plant has a production capacity of 30,000 tons of LPG per annum, ensuring a reliable and consistent local supply.

The Inhassoro LPG plant is a key component of a larger energy project, which also yields approximately 4,000 barrels of light oil per day and 23 petajoules of natural gas per year (equivalent to around 6.4 TWh). Meanwhile, the majority of the natural gas produced will be allocated to the 450 MW Temane power plant, slated to become Mozambique’s second-largest power station, thus underscoring the integral role of LPG production in the country’s energy infrastructure.

Reducing Dependence on Imports

In addition to boosting local production, local LPG production aims to cut Mozambique’s reliance on imports. In 2023, the country imported 48,636 tons of propane worth $35.7 million. By comparison, domestic demand was about 47,000 tons, according to World Bank data based on COMTRADE statistics. As a result, the Inhassoro plant’s annual output of 30,000 tons is expected to meet around 64% of national demand, aligning with government targets to reduce cooking gas imports by approximately 70%. Hence, this development establishes a benchmark for monitoring future production and supply trends in Mozambique’s LPG sector.

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