The project would help Zimbabwe tackle its power crisis and reduce its dependence on coal and hydropower.
A Zimbabwean consortium, Mbuyu Energy, has signed a gas supply deal with Australian firm, Invictus Energy and its local partner, One Gas Resources, to build a 500MW gas-fired power plant, amid efforts to secure cleaner and more reliable sources of power in the southern African country.
The plant would use gas from the Mukuyu field or another field in the Cabora Bassa project, both operated by the Australian firm where a gas discovery was announced last week. The deal with Mbuyu Energy, announced on December 18th, updates a previous MoU signed in 2019 and sets the stage for a long-term contract to supply sufficient gas to power the proposed plant.
“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,” Managing Director at Invictus Scott Macmillan said in an official statement, adding the MoU shows the huge appetite for gas in a region faced with energy shortages.
“We look forward to working closely with Mbuyu Energy and our partners One-Gas Resources to progress the project and with the ultimate goal of providing reliable and affordable baseload power to Zimbabwe and the region.”
The project would help Zimbabwe tackle its power crisis and reduce its dependence on coal and hydropower. Gas is cleaner than coal, and more reliable than hydro given fluctuation reservoir levels on the Zambezi River. The plant would also support the integration of more renewable energy into the grid and use cutting-edge technology to lower its carbon footprint. It could eventually expand to 1,000MW, depending on the demand and supply of gas.
Mbuyu is betting on the project to offer reliable and affordable baselaod power to existing power consumers, such as miners, industrialists and others, who currently import electricity from neighbouring countries.
“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,” Director of Mbuyu Energy 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. The introduction of much-needed dispatchable energy for the national grid will enhance energy security, reliability, and facilitate the increased integration of renewables.”
This is the second major gas supply deal for the Cabora Bassa project, following an earlier MoU with Sable Chemicals, a fertiliser maker. The deal would provide gas feedstock for the production of ammonium nitrate, which is now imported by rail from South Africa.
The plant would use gas from the Mukuyu field or another field in the Cabora Bassa project, both operated by the Australian firm where a gas discovery was announced last week. The deal with Mbuyu Energy, announced on December 18th, updates a previous MoU signed in 2019 and sets the stage for a long-term contract to supply sufficient gas to power the proposed plant.
“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,” Managing Director at Invictus Scott Macmillan said in an official statement, adding the MoU shows the huge appetite for gas in a region faced with energy shortages.
“We look forward to working closely with Mbuyu Energy and our partners One-Gas Resources to progress the project and with the ultimate goal of providing reliable and affordable baseload power to Zimbabwe and the region.”
The project would help Zimbabwe tackle its power crisis and reduce its dependence on coal and hydropower. Gas is cleaner than coal, and more reliable than hydro given fluctuation reservoir levels on the Zambezi River. The plant would also support the integration of more renewable energy into the grid and use cutting-edge technology to lower its carbon footprint. It could eventually expand to 1,000MW, depending on the demand and supply of gas.
Mbuyu is betting on the project to offer reliable and affordable baselaod power to existing power consumers, such as miners, industrialists and others, who currently import electricity from neighbouring countries.
“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,” Director of Mbuyu Energy 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. The introduction of much-needed dispatchable energy for the national grid will enhance energy security, reliability, and facilitate the increased integration of renewables.”
This is the second major gas supply deal for the Cabora Bassa project, following an earlier MoU with Sable Chemicals, a fertiliser maker. The deal would provide gas feedstock for the production of ammonium nitrate, which is now imported by rail from South Africa.
