(Bloomberg) -- Globeleq Inc.’s gas-fired power station in Mozambique, designed to boost electricity in one of the world’s poorest nations, has been delayed for several months into 2025 due to extreme weather events.
The 450-megawatt Central Termica de Temane project was expected to start producing power this year, before weather systems punished the coastline near where the plant is being built.
“The Temane project has faced delays due to the impact of Cyclone Freddy last year and Tropical Storm Filipo earlier this year,” Globeleq said in a reply to questions. “As a consequence, commissioning of the project is delayed and is now due to start in the second quarter of next year.”
Cyclone Freddy killed dozens and displaced thousands and destroyed homes and roads in Mozambique early last year. Tropical Storm Filipo hit this past March.
African nations containing natural gas — often discovered by foreign companies that develop projects to export the resources — are looking at using the fuel to industrialize their economies. The completion of such plants on the continent has been rare, and the project in Mozambique emerged as a potential success with funding from international development banks.
Globeleq in 2021 reached financial close with its partners, state-owned Electricidade de Moçambique and Sasol Ltd. Construction on the $652 million Temane plant began in January 2022.
The broader project, including gas development and regional grids, will draw more than $2 billion of investment, the companies said previously. The International Finance Corp., U.S. International Development Finance Corp. and the OPEC Fund for International Development were also involved in funding.
The plant is designed to meet demand for 800,000 consumers in a country where only a third of the population has access to electricity. British International Investment owns 70% of Globeleq, with Norwegian investment fund Norfund holding the remainder.
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