Gas explorer Invictus Energy has signed a non-binding MoU with Zimbabwean energy firm Tatanga Energy for the supply of gas to Tatanga’s proposed 500MW power plant, once a potential commercial gas discovery at the Muzarabani prospect is confirmed.
Under the MoU, Tatanga Energy, together with Invictus and its partner One Gas, will jointly investigate the viability of supplying gas to Tatanga’s planned power project, which aims to supply the national grid and clients in Zimbabwe, Zambia and Mozambique.
The MoU plans 11 billion cubic feet (Bcf) per year, which could be increased to 36.5Bcf per annum.
“Signing this MoU with Tatanga Energy to develop a 500MW gas-to-power project is another significant step forward in our commercial negotiations as we look to progress the Cabora Bassa project,” managing director Scott Macmillan said.
Tatanga’s proposed plant will be built in two phases, with capacity for the first phase at 150MW while the second phase would add 350MW.
“Zimbabwe and Southern Africa is in the midst of an energy crises with the region enduring acute energy shortages which is hampering industry and economic growth,” added Macmillan.
“The potential gas supply of up to 100 million cubic feet per day for 20 years is a substantial volume, which will underpin the development of any commercial gas discovery we make in the Cabora Bassa project.”
Tunde Akerele, CEO of Tatanga Energy, said: “Given the constrained domestic energy landscape and the importance of securing reliable and affordable feedstock supply in an undersupplied market, Tatanga Energy has entered into an early Gas Sales MoU as an important step to further commercial negotiations in the event of a successful exploration program from Invictus.”
The Tatanga MoU is the second that Invictus as entered into, as it looks to secure supply contracts for future gas output.
In May, Invictus and Sable Chemicals signed an MoU to supply natural gas to the country’s sole ammonium nitrate producer. Under that MoU, Invictus would supply up to 70 million cubic feet of gas per day for 20 years, which would be enough to sustain production for Invictus and at the same time meet the supply needs of Sable’s Kwekwe plant, one of the country’s biggest consumers and importers of gas.
This arrangement would mean Sable finally replacing imported ammonium gas with natural gas from Invictus’ Muzarabani project.
Tatanga is already working with Sable on a separate project to build and operate a 50MW solar farm near the fertiliser plant at Sherwood, 20km north of Kwekwe, by 2021. The project is a joint venture between Tatanga, Sable and its parent Masawara, and Tatanga Energy. Masawara owns 70% of the solar project while Tatanga holds the remaining 30%.