IEEJ:August 2015
REPUBLIC OF MOÇAMBIQUEMINISTRY OF MINERAL RESOURCES AND ENERGY
MOZAMBIQUE REPORTENERGY POLICYbyJose Muhai(Chemical Engineer)
TOKYO, JAPANEnergy Policy Training, May 31 toJune 20, 2015

Presentation Outline
1. General Information of the Country
1.1. Country Profile
1.2. Energy Institutional legal framework
1.3. Energy Sources

2. Current energy policy and measures
2.1. Production and Electricity Transmission
2.2. Fuel production and building infrastructures
2.3. Fuel production and building infrastructures
2.4. Projects Funding and Energy Prices

3. Past energy demand and supply(statistics)
4. Outlook of energy demand and supply
5. Major difficulties andformulating energy policies

bottlenecks

currently facedin

6. Subjects I would like to study in the order of priority and thereason2

1. General Information of the Country
1.1. Country Profile Location:Africa;

South-Eastern Total area: 801,590 km2
and commonborderwith 6 countries;
 Coastline: 2,470 km (1,535miles); Population: 25 million(estimatimates-2014); and GDP: 684.1
capita)USD(per31. General Information of the Country(Cont.)

1.2. Energy Institutional legal framework

The Ministry of Mineral Resources and Energy is responsible forrunning all mineral and energy resources issues.
One of the main policy documents is the Energy Policy (1998). The
Government's Energy Policy is straight-forward, presenting a clear
statement on the importance of providing energy to the households
and productive sectors.
The Energy Sector Strategy (2000) complements the Energy Policy
and focuses specifically on how to implement the Energy Policy,
including increasing the role of the private sector, developing morecompetitive markets, and the need for regulation.
The Electricity Master Plan for Development of the National Grid
2005-2019 focuses on Grid Supply Expansion in the short-tomedium term.
The Natural Gas Master Plan approved by the Cabinet in 2013 is thescript for the formulation and adoption of policies, strategic andinstitutional decisions on the basis of which can be designed andimplemented in a coordinated manner future.
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1. General Information of the Country(Cont.)
1.3. Energy Resources

1.3.1. Oil and Natural Gasa) Oil products
Mozambique consumes and imports 918.000 tons of oil peryear, the bulk of which is in the form of diesel. At present
there is no oil refinery and as a result, all refined products
must be imported.
Distribution and marketing of fuel products and lubricants iscarried out by the state owned oil company Petromoc with
42 % of market sharing. Other companies include BP, Total,
Pertrogal, Engen, Pess, Puma, Exor, IPM and Ener Invest,
Vidagas, Petrogas and Rur Energia. Allover the country
there are 351 filling stations.
The country holds 4 main oil terminal, namely Maputo,Beira, Nacala and Pemba ports(figure 1) and the storage
capacity of oil products entire the country is about 702.044
tons.
51. Introduction Information of the Country(Cont.)
1.3. Energy Resources
1.3.2. Natural Gas (Rovuma basin reservoirs)
Concessions

Participations

Area Onshore Anadarko(35.7%),
Artumas(15.3%)
Maurel & Pron (24%),
ENH (15%) & Cove
Energy (10%)
Area 1

Anadarko(36.5%),
Mitsui (20%), ENH(15%), BPRL (10%),
Videocon (10%) &Cove Energy (8.5%)

Area 4

ENI(70%),ENH(10%), KOGAS (10%)& Galp Energia (10%)

Area 2 & 5

Statoil (90%) & ENH(10%)

Area 3 & 6

Petronas (90%)
ENH (10%)&1. Introduction Information of the Country(Cont.)
1.3. Energy Resources
1.3.2. Natural Gas (Temane and Pande reservoirs)
Concessions

Participations

Pande/Temane

Sasol (85%) & ENH(15%)

16 & 19Sasol(50%),
Petronas (35%)& ENH (15%)

Inhaminga

DNO (55%), NewAge(40%)
Harmattan (5%)

Bloco deSofala

Sasol (85%) & ENH(15%)

M-10

Sasol(42.5%),
Petronas (42.50%)& ENH (15%)

Búzi

PT Kalila (70%) &ENH (30%)
71. Introduction(Cont.)
1.3. Energy Resources
1.3.3. Electricity

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1. General Information of the Country(Cont.)
1.3. Energy Resources
1.3.4. Renewables Energya) Hydropower
Besides HCB hydropower referred above, theGovernment has identified roughly 100 locations
with hydropower potential including all over thecountry. As electricity demand across the South
African Power Pool (SAPP) grows, developing
Mozambique’s hydropower potential, and thenecessary transmission links to neighboring
countries, will be one of the keys to keeping costs
and carbon emissions low.
b) Solar
Mozambique has a huge and virtually unexploited
solar potential. Annual incident solar radiation,
distributed evenly across the country, is about 1.49
million GWh – thousands of times more than thecountry’s current annual energy demand.
91. General Information of the Country(Cont.)
1.3. Energy Resources
1.3.4. Renewables Energyc) WindIn the context of promoting clean energy, measurements of thewind power potential in the country are taking place in the Ponta
de Ouro, District of Matutuıne, in Maputo Province and Tofinho,
city of Inhambane, in the province of the same name. Moremeasurements in other locations to map the national wind power
potential are planned.
d) Biofuel
Use of biomass electricity has the potential to generate the mostjobs because Mozambique’s small and medium sized enterprises
can be involved in all stages of the supply and production chain.
Bagasse wastes from the sugar and coconut industries and theother sources could enable Mozambique to quickly build up a
power industry based on clean, indigenous biomass fuels.

2. Current energy policy and measures
The current energy policy aims are to guarantee:
 Building new power plants and transmission
lines;
 Production of natural gas and fuels including
the building ofdistribution and storage
infrastructures; Distribution and access to electricity, fuels andnatural gas; Funding of projects and adjustment
electricity tariff and fuels price.

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2. Current energy policy and measures (Cont.)
2.1. Power production and Electricity Transmission

 Resize the HCB hydropower dam mainly oriented to thedomestic needs of power to the country;
 Implementation of the Mphanda Nkuwa's project ofbuilding new hydropower under zambeze river; Construction of power transmission lines allover thecountry; and Increase power access at least to the 50 % of thepopulation;

122. Current energy policy and measures (Cont.)
2.2. Fuel production and building infrastructures

 The Government has spent on average about 130 million USD a year tosubsidize the consumption of oil products, which represents 1.2% of GDP(or 4.0% of total expenditure of the state budget) per year. If this situation is
not reversed it will tend to worsen substantially the quality of public
transport as well as the financial condition of fuel operators and theconsequently the economy of the country.
 The production of fuels from coal ( " Coal to Liquids " ) is a less common
alternative technology but for high interest for the country so it will beencouraged these kind of projects.
 Settling a specific incentive package (available gas at competitive price)
to attract public and private investment with a view to establishing a natural
gas and condensates refinery for the production of fuels(40,000 bbl/day).

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2. Current energy policy and measures (Cont.)
2.2. Fuels and natural gas distribution•

Increase the storage capacity of oil products;•Construction of at least two LPG terminals including storage inNacala and Beira ports;•Construction of natural gas distribution infrastructure throughpipelines in the main cities of the country.

•Achieve 10 % of the cars powered by natural gas andconstruction of 100 natural gas filling stations all over thecountry;•Giving financial support for conversion and import of vehicles
powered by natural gas;14

2. Current energy policy and measures (Cont.)
2.2. Projects funding and energy price• Making the gradual adjustment of electricity tariff in orderto achieve the sustainability of the power supply business;• Making the gradual adjustment of fuel prices to keep itsalignment with international market prices and cutting ofsubsidies given to distributor’s oil companies.
• Liberalization of the LPG price in order to encourage
investment

fordistribution

infrastructure

and

allow

economies of scale gains.

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3. Past energy demand and supply(statistics)
3.1. Oil consumption

The average of oil consumption a year is about 918.000 MT which morethan 70 % is diesel.
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3. Past energy demand and supply(statistics)
3.1. Natural gas and condensate

3. Past energy demand and supply(statistics)
3.1. Electricity production, domestic consumption, export and import18

4. Outlook of energy demand and supply
4.1. Oil consumption
Oil Consumption (2015-2019)
1,400,000
1,200,000
1,000,000

MT

800,000
600,000
400,000
200,000
-

2015

2016

2017

2018

2019

Year

LPG

Jet A1

Kerosene

Gasoline

Diesel19

4. Outlook of energy demand and supply
4.2. Natural gas and condensate20

4. Outlook of energy demand and supply
4.3. Electricity production, domestic consumption, export andimportElectricity (2015-2019)
25,000,000

20,000,000

MWh

15,000,000

10,000,000

5,000,000-2015

Electricity Production

2016
Electricity Export

2017

Year2018

Domestic consuption of Electricity2019Electricity Import21

5.Major difficulties and bottlenecks currently
faced in formulating energy policies
 The country has been recording constant interruptions of power supply
due to increased energy demand resulting from construction of new
industrial, hotel and office buildings and housing. Policy-making foraddressing this problem is the lack of funding and coupled with the factthat the electricity tariff be adjusted no longer than 6 years the result isthat country has been facing difficulty to invest in the construction of
new power transmission lines as well as the lack of funding for newhydro, thermal and other sources to generate energy.
 The government has been given subsidies to oil distributors companies
because of that they do not have financial capacity for funding theimplementation of projects aimed at building the distribution
infrastructure and storage while there is no fuel price adjustment thosewill continue to record losses. In this context, the plans formulated by
the energy sector are barriers to their implementation as the result ofcompanies do not have funds to increase the storage capacity also
coupled with the fact that government did not have funds to build fuelstorage infrastructures in ports and other places.
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6. Subjects I would like to study in theorder of priority and the reason
 subsidies to electricity tariff and fuel prices because this problem hinder
the development of policies that contribute for making the companies
more competitive as well as for best of electricity and fuels supply
services including expansion of those services for in regions where there
are still no infrastructure for this purpose.
 Procurement issues to give skill for making terms of reference and bid
documents to the energy sector tenders.
 Energy efficiency issues because there are lots of opportunities to saveenergy in the country by implementation of energy management
measures.

 Attracting investments for building of infrastructure for storage fuels
storage to reduce the effect oil prices in the international market as well
as for new power plant and transmission lines.
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THANK YOU!

Contact : report@tky.ieej.or.jp

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