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    The Citizen: Gas Deal May Cut Eskom’s R1bn Bill

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Summary

An deal struck between Sunbird Energy and South Africa utility Eskom could help to cut the utility's diesel bill and create jobs and an integrated gas economy

by: Erica Mills

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Press Notes, Africa

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The Citizen: Gas Deal May Cut Eskom’s R1bn Bill

Australian-listed Sunbird Energy yesterday concluded a preliminary agreement to supply gas to Eskom that may lower the diesel bill that is currently a huge burden on the utility and its customers.

Financial close is expected within the current calender year and first gas is expected to be supplied in 2018. The project entails the supply of 30 billion cubic feet (Bcf) of gas from the Ibhubesi gas field 70km offshore South Africa’s West Coast to Eskom’s Ankerlig open-cycle gas turbine (OCGT) situated at Atlantis near Cape Town for 15 years.

Ibhubesi is a joint venture between Sunbird (76%) and PetroSA (24%).

Speaking in Johannesburg, Sunbird executive chairman Kerwin Rana said the project will lay a foundation for the development of an integrated gas economy on South Africa’s West Coast with significant job creation.

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