Invictus Energy Limited, which is exploring oil in Mzarabani and One-Gas Resources (Pvt) Limited entered into a non-binding Memorandum of Understanding (MOU) with Sable Chemical Industries to progress gas supply from the Cabora Bassa Project.
Invictus and Sable Chemical agreed to jointly work together and cooperate with regards to investigating the economic and commercial viability of supplying natural gas from the Cabora Bassa Project to the Sble fertilizer plant in Kwekwe.
“Signing this MOU with Sable marks a significant milestone in our commercial negotiations as we look to progress the Cabora Bassa Project.” Invictus Managing Director Scott Macmillan said.
“Sable is the sole producer of nitrogenous fertilizer in Zimbabwe and a well-recognised brand in the country. We are proud to work with them to fulfil their ambition of becoming the preferred manufacturer and supplier of fertilizers and other chemical products in Africa.”
The MOU is also for the supply of up to 26 billion cubic feet of gas per year for 20 years (70 million cubic feet per day).
“The potential gas supply of up to 70 million cubic feet per day for 20 years is a substantial volume which will help underpin the development of any commercial gas discovery we make in the Cabora Bassa Project,” Macmillan said.
“This MOU demonstrates the huge local gas demand in an energy starved market in Zimbabwe and we expect to enter into additional gas supply MOUs in the future.”
Sable Chemical, which is the sole manufacturer of Ammonium Nitrate (AN) fertilizer, imports ammonia gas from South Africa.
Sable Chemicals CEO Bothwell Nyareka said, “We are extremely pleased to enter into this MOU with Invictus and potentially secure an indigenous natural gas supply to produce ammonia gas for our fertilizer plant.”
“Sable Chemicals currently has a capacity to produce 240,000 tonnes of ammonium nitrate per year and has historically played an important anchoring role in the agricultural sector of Zimbabwe, thus ensuring that well priced fertilizers, with formulations that are optimized to suit local conditions, are made available to farmers in a timeous manner each year.”
“The potential future supply of gas by Invictus is also critical for Sable’s medium-term expansion program aimed at increasing production to 600,000 tonnes of nitrogenous fertilisers.”