Maputo — The Mozambican government has extended, for a further period of 15 years, the gas pipeline concession held by the Matola Gas Company (MGC) for the transport of natural gas from the administrative post of Ressano Garcia, on the border with South Africa.

The decision at a meeting of the Council of Ministers (Cabinet), which took place on Tuesday, in Maputo.

According to a statement from the Council of Ministers, the extension aims to allow for new investments estimated at 300 million dollars, with work due to start this year.

The investment aims to set up new infrastructures and connect MGC's existing facilities to receive volumes of Liquefied Natural Gas (LNG) regasified by the Beluluane Gas Company (BGC).

MGC is dedicated to the transport, distribution and sale of natural gas produced in Mozambique, which is used as an energy source for the operation of various industrial units in Maputo province.

Founded in 2004, MGC is owned by the Mozambican government through the National Hydrocarbons Company (ENH) and by the South African energy company, Gigajoule International.

MGC operates a natural gas transmission and distribution pipeline with a length of around 100 kilometers, under a concession agreement with the government for distribution in Maputo province.

The MGCs pipeline starts in Ressano Garcia where it is connected to the main gas pipeline running from the Pande and Temane gas fields, in the southern province of Inhambane, to Secunda in South Africa.

MGC currently supplies natural gas to the Mozal aluminium smelter, to the cement factory, Cimentos de Moçambique, and to 18 other companies located in Maputo province.