Oil explorer, Invictus Energy Limited and One-Gas Resources (Pvt) Limited entered into a non-binding Memorandum of Understanding (MoU) with Tatanga Energy (Private) Limited to progress supply for around 500 megawatt (MW) Gas to Power plant in the event of a commercial gas discovery from Muzarabani.
Under the MOU, Invictus and Tatanga have 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 proposed gas to power plant which will be sold to the national grid and to captive clients in Zimbabwe, Zambia and Mozambique.
Invictus Managing Director Scott Macmillan said, “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. 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.”
“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. This MOU demonstrates the huge local in an energy starved market in Zimbabwe and illustrates how the gas market dynamics have changed since Mobil exited Zimbabwe 25 years ago due to the lack of a market at the time.”
Tunde Akerele, CEO of Tatanga Energy said the energy project supports Zimbabwe’s Vision 2030 twin goals of boosting economic growth and driving investment in private and public projects.
“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,” Akerele said.
“Invictus’ high prospectivity Cabora Bassa Project in Muzarabani could potentially play a transformational role in the development of the Zimbabwean economy fostering new industries and providing the feedstock for the generation of much needed predictable and affordable dispatchable energy for the national grid.”
“The power project represents further progress for Tatanga’s ambitions to develop a multi feedstock regional energy platform. The project will bolster and diversify Tatanga’s project pipeline of IPP’s and further underpins the potential for Zimbabwe to generate sufficient energy to meet its well established historical and projected future demand profiles from domestic feedstock sources,” Akerele went on.
Invictus has been exploring the Muzarabani area in the hope of finding oil.
Tatanga Energy is currently developing 2 solar PV projects with Masawara Limited and Sable Chemicals Limited.