Invictus signs updated gas supply MoU for Zimbabwean power project
Invictus Energy, an Australia-listed company, has inked an updated memorandum of understanding (MoU) with Zimbabwean consortium Mbuyu Energy for the supply of gas to their proposed 500 MW gas-to-power project, it said on December 18. Invictus will supply the gas from its Cabora Bassa project in Zimbabwe.
Led by independent power producer (IPP) developer Tatanga Energy, Mbuyu Energy includes Mangwana Opportunities Fund, an existing institutional shareholder of Invictus. This collaboration follows the recent confirmation of a gas discovery at the Cabora Bassa project and builds upon the initial MoU signed in December 2019 with Tatanga.
The updated MoU serves as a precursor to the negotiation of a comprehensive, long-term gas sale agreement, ensuring an ample supply of gas for the proposed 500 MW plant. Notably, the facility has the potential for future expansion, reaching up to 1 GW in subsequent phases.
Invictus said that the gas-to-power project's development will align with the broader Mukuyu field and the Cabora Bassa project as a whole, encompassing gas production, transportation, and processing infrastructure to provide natural gas feedstock to the power plant.
Preliminary feasibility studies have identified suitable locations for electricity supply through the local grid and potential exports to customers through the Southern Africa Power Pool (SAPP). The Mukuyu gas field's location, within 100 km of major interconnectors to the SAPP grid, positions it to export power to neighboring countries, Invictus said, adding discussions with existing power offtakers, including large-scale miners and industrial users, are expected to explore opportunities for electricity supply.
“The potential offtake is a substantial volume of gas of up to 1.4 trillion ft3 which will underpin the commercialisation of the Mukuyu gas field. This MoU demonstrates the huge demand in an energy starved market in Zimbabwe and the wider region,” Invictus managing director Scott Macmillan said.
This marks the second major gas sale MoU for the Cabora Bassa project, following a previous agreement with Sable Chemicals for gas feedstock to manufacture ammonium nitrate fertilizer, currently supplied by rail from South Africa.