Over the last three years, Galp has invested around 25 million dollars (1.5 billion meticais) in the Liquefied Petroleum Gas (LPG) business, better known as cooking gas. This investment was mainly used to build an LPG reception and storage unit with a capacity of 6,000 cubic meters, and to set up a new automatic filling unit with a capacity of 1,200 cylinders per hour.
According to the executive director of Galp Energy, Paulo Varela, these investments have broadened the horizon of gas distribution in Mozambique and enabled the transportation of more than two million LPG cylinders last year. Varela pointed out that Galp currently has 700,000 gas bottles on the market, having increased this number by 150,000 in the last three years. With an estimated market share of two thirds, Galp is responsible for selling two out of every three gas cylinders in the country.
The director pointed out that despite the increase in the price of oil, LPG is still cheaper than other alternative sources, such as coal. He also mentioned the construction of the first LPG processing refinery in the country, with the capacity to produce around 30,000 tons a year for domestic consumption, as a positive development for the sector. He also highlighted the National Program for the Massification of LPG use underway since 2022, which has already benefited around 30,000 families in eight of Mozambique’s provinces, replacing imports by around 60% to 70%.
The adoption of LPG as a primary energy source is particularly important in a country where 90% of the population still uses biomass as their primary energy source. Galp has consolidated its presence at national level, in all provincial capitals, and in all consumption zones, over the last three decades, which has contributed significantly to its leadership in the cooking gas market in Mozambique.
