Chronicle Editor
Sikhulekelani Moyo, [email protected]
AUSTRALIAN oil and gas exploration firm, Invictus Energy Limited, has renewed a Memorandum of Understanding (MoU) with Mbuyu Energy to deliver gas to its proposed 1 000MW Gas-to-Power Project.
Invictus, which recently confirmed the discovery of commercial gas reserves at the Cabora Bassa Project at Muzarabani in Mashonaland Central, has said it will supply gas for the power project from its 80 percent owned operations in Zimbabwe.
In a statement on Monday, the company said the updated MoU builds on the previous MoU signed in December 2019 with Tatanga Energy.
While the initial agreement was for 500MW, the company says the power plant can be expanded in future phases to up to 1 000MW, equating to a forecasted demand of approximately 1,4 trillion cubic feet of natural gas over 20 years.
The updated MoU will see the parties work together to assess the feasibility of developing the project utilising gas produced from the Mukuyu field or any other field developed in the Cabora Bassa project.
“Signing this MoU with Mbuyu Energy to develop a 1 000MW gas-to-power project is another significant step forward in our early commercialisation strategy as we look to progress the Cabora Bassa project following our gas discovery at Mukuyu.
“The potential offtake is a substantial volume of gas of up to 1,4 trillion cubic feet, which will underpin the commercialisation of the Mukuyu gas field,” said Invictus managing director, Mr Scott Macmillan.
“This MoU demonstrates the huge demand in an energy-starved market in Zimbabwe and the wider region.”
Mr Macmillan said natural gas and power are in high demand in Southern Africa due to increasing supply shortages of natural gas from mature fields that are now in decline.
He noted the retirement of over 10 000MW of aging coal-fired power infrastructure in the region, and the increasing adoption of gas for industrial use and as a source of cleaner energy, as opportunities for gas projects.
“We look forward to working closely with Mbuyu Energy and our partners One-Gas Resources to progress the project with the ultimate goal of providing reliable and affordable baseload power to Zimbabwe and the region,” he added.
The discovery of gas in Muzarabani by Invictus is seen as a potential game changer for Zimbabwe’s economic growth, energy security, and opportunities for further investment in the exploration of hydrocarbons in Zimbabwe, among several other potential benefits.
Mbuyu Energy director, Mr Tunde Akerele, said this MoU signifies a critical step forward in transitioning Zimbabwe away from its reliance on coal power generation and towards a more diversified energy mix that includes natural gas and renewables.
“We are thrilled to join forces with Invictus and One Gas Resources to not only unlock the immense potential of the Mukuyu discovery, but also pave the way for a cleaner and more sustainable energy future for Zimbabwe,” said the official.
“The introduction of much-needed dispatchable energy for the national grid will enhance energy security, reliability, and facilitate the increased integration of renewables.
“The project also has significant potential to drive economic growth, fostering new industries, creating jobs, and stimulating broader economic development across Zimbabwe.”
He said they were confident that the Gas-to-Power Project represents a turning point for Zimbabwe’s energy sector and its journey towards a cleaner and more prosperous future.
The country has been experiencing intermittent power supply gaps, which has led to load-shedding, particularly during peak hours occasioned by a constrained generation capacity. —@SikhulekelaniM1
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