By: Africa's premier oil & gas report

The Mozambican government has approved the concession of the Pemba Port and Logistics Terminal in the gas-rich Cabo Delgado Province in the north of the country.

The concession is awarded to a consortium named Sociedade Pemba Bulk Terminal Limitada, in a transaction valued at $220Million.

The government hopes that the consortium, which comprises of CD Properties and Portos de Cabo Delgado, SA, will improve the essential infrastructure of the port for the logistical operations of hydrocarbon exploration projects in the gas prone Rovuma basin.

The state-affiliated newspaper Noticias cites a statement from the Council of Ministers, as noting that a key focus of the concession  is the expansion and improvement of the harbour, which currently has a docking capacity of 115 metres. It is also expected that the terminal’s floating gate will be modernised, through an additional investment of  $775Million. About $85Million is also expected to be invested on adaptation of the infrastructure to the specific demands of the hydrocarbon industry. Sociedade Pemba Bulk Terminal Limitada  will be constructing and upgrading infrastructure both on land and on the water.

“The government emphasises that this investment is crucial to guarantee the continuity of oil and natural gas operations in Cabo Delgado, one of the country’s main economic regions”, Noticias says, adding that “these investments strengthen the logistical capacity of northern Mozambique, a key area for the development of liquefied natural gas (LNG) projects, which play a central role in the country’s economic growth prospects in the coming years”.