MGC has had the foresight to provide a suitable gas take-off facility at that stage. The MGC pipeline as well as a distribution network was completed in 2005 and by 2010, more than 20 industries in Matola/Maputo were using natural gas as their main source of energy and the first numbers of vehicles are using clean natural gas.
Before the appearance of these natural gas fired power stations, electricity in Mozambique was mainly generated through hydro power and a number diesel fired power stations. Mozambique has substantial proven natural gas reserves of which currently less than 3% is being utilised. These natural gas resources could be used for power generation to the benefit of the region.
The consortium spearheaded by Gigajoule, completed a number of studies on the viability of a gas fueled power station at Ressano Garcia in Mozambique. The studies showed that it will add substantial value to the Mozambican economy, which gas is currently leaving the country, attract substantial investment, create much needed jobs and generate substantial benefits to the Mozambican Government.
A new company, Gigawatt Moçambique SA, was incorporated and the development of the Project commenced in the middle of 2014. The ideal site outside the border town of Ressano Garcia was secured for the Project due it is close proximity to the existing gas infrastructure, the EDM transmission network, and the EN4 main road.
The Project and a power concession application were presented to the Government of Mozambique. On 23 December 2010 the Council of Ministers, on behalf of the Mozambican Government, awarded Gigawatt a 25 year concession for the generation of 100MW of electrical power, using Mozambican natural gas as fuel.
The development of the Project was successfully concluded within time and within budget. The commercial operation of the plant started on the 13th of December 2015 and was inaugurated by the President of the Republic of Mozambique in February of 2016.