Inhassoro, Mozambique — President Daniel Chapo on Wednesday inaugurated the country’s first Integrated Gas Processing Facility (IPF), calling it a defining milestone in Mozambique’s march towards economic sovereignty and industrial transformation. The ceremony, held in Inhassoro, Inhambane Province, was attended by South African President Cyril Ramaphosa, whose presence Chapo described as “a reaffirmation of a shared history of struggle, solidarity and common destiny.”
The IPF is part of a major cross-border energy project developed under a Production Sharing Contract between the Government of Mozambique, the National Hydrocarbons Company (ENH) and South Africa’s SASOL. It includes a 450-MW Temane Thermal Power Plant (still under construction), a Liquefied Petroleum Gas (LPG) production unit capable of 30,000 tonnes per year, and facilities producing around 4,000 barrels of light oil daily.
“This project is more than infrastructure; it is a strategic turning point,” President Chapo said. “We are transforming gas into development, gas into industry, gas into jobs, and gas into dignity for the Mozambican people.”
A Major Shift Toward Local Transformation
President Chapo emphasised that Mozambique is entering “the era of local transformation, industrialisation and economic sovereignty,” marking a decisive step toward abandoning the historical pattern of exporting raw materials and importing finished products.
The facility provides Mozambique with modern capacity to process, stabilise and separate hydrocarbons – an essential foundation for developing the petrochemical industry, fertiliser production, liquid fuels, industrial gas and other value-added sectors.
With the inauguration, Mozambique will now reduce nearly 70% of its LPG imports – a shift Chapo described as “a monumental turnaround for national energy security and economic stability.”
“For the first time, around 75% of the LPG used by Mozambicans will be produced here at home,” he said. “We save money, we generate revenue, and we strengthen our sovereignty.”
A Regional Energy Hub in the Making
The President highlighted the transformation of Inhambane Province into a national and regional energy and industrial hub. The gas facility complements other strategic investments, such as:
- The Coral Norte floating LNG platform in Cabo Delgado, which will increase domestic gas availability, and
- LNG receiving terminals in Sofala and Inhambane, key to large-scale industrialisation and energy transport.
“These infrastructures reinforce Mozambique’s position as a regional energy hub,” Chapo said, adding that cooperation with South Africa in energy, logistics, security and trade “gains new impetus with this milestone,” Chapo said.
President Chapo was honoured for South Africa’s continued partnership. “Today we celebrate not just an industrial inauguration, but the strength of a strategic partnership that transcends borders,” Chapo noted. “Mozambique and South Africa do not grow apart – we grow together.”
Jobs, Local Content and Social Impact
The project generated 1,685 national jobs during construction and will create 120 permanent jobs during operations, with over 80% of hiring done locally.
Chapo stressed that this represents “opportunity, training and income for the youth and women of Inhassoro, Govuro, Vilankulo, Massinga and the wider Inhambane Province.”
The project also delivered tangible social benefits, including:
- A new resettlement village with 45 modern houses; and
- A fully rehabilitated Joaquim Marra Primary School, now featuring 12 classrooms, sports facilities, an administrative block and staff accommodation.
“This is development with a human face,” Chapo said. “Strategic investments must leave a legacy for local communities.”
Energy Security and a Cleaner Future
The President reiterated that the expansion of LPG access is both an economic and social priority.
“Ensuring that each Mozambican family has access to clean, affordable and reliable cooking gas is an act of national dignity,” he stated.
He emphasised that greater LPG use will:
- Improve health and safety in households;
- Reduce dependence on firewood and charcoal;
- Protect forests and biodiversity; and
- Improve quality of life, especially for women.
Chapo urged SASOL and ENH to accelerate nationwide distribution. “We have resources, and we have vision. Now we demand results: accessible and stable gas for all Mozambican families.”
Preparing Mozambique for the Next 50 Years
As Mozambique marks 50 years of national independence in 2025, Chapo framed the inauguration as a cornerstone in building the foundations of Economic Independence – the central objective of his government cycle.
“This project is part of a broader effort to build an industrialised, resilient and sovereign Mozambique – one prepared for the next 50 years,” he said.
The President concluded by officially declaring the LPG Production Unit open.
“May this infrastructure stand as a living testament to the determination of Mozambicans and South Africans to build a sovereign, industrialised and prosperous SADC region,” he said.
The integrated project, he added, “will continue to expand and revolutionise both the Mozambican economy and the broader regional economy in the years ahead.”
