Jun 28, 2012
Sasol to make investment call on 140 MW Moz power plant before year-endBack
Africa|CoAL|Engines|Eskom|PROJECT|Projects|Sasol|Shanduka|Africa|Finland|Mozambique|South Africa|United Kingdom|MW Power Plant|Sasolburg Complex|Chemicals|Electricity|Energy|Final Investment|Gas Engine Power Project|Gas Pipeline|Power Generation|Power-generation|Temporary Gas-fired Power Plant|Christine Ramon|Electricidade De Mo|Infrastructure|Power
© Reuse this
In a letter to shareholders, CFO Christine Ramon indicated that the development was being pursued by Sasol New Energy, in partnership with State-owned power utility Electricidade de Moçambique (EDM).
Sasol was likely to take a 49% shareholding in the power plant, which was expected to start operating during 2014.
In June, Aggreko, of the UK, and black economic-empowerment company Shanduka unveiled plans for a 107 MW temporary gas-fired power plant, in Mozambique, which would be fuelled by gas from Sasol's Temane gasfield.
The electricity, which should begin flowing later this year, would be purchased by South African power utility Eskom (92 MW) and its Mozambican counterpart, EDM, which had signed an agreement for 15 MW.
The plant was being developed at a site near Ressano Garcia, which is said to be located near to the existing Sasol gas pipeline, running from northern Mozambique to South Africa, as well as a 275 kV transmission corridor.
Aggreko indicated it would build gas interconnections, a substation, and a 1.5 km 275 kV transmission line to the main network and the infrastructure would remain intact after the ‘bridging’ installation was dismantled.
Aggreko and Shanduka indicated that Sasol planned to reallocate the gas to “other ventures” after July 2014.
The Sasol-EDM project was likely to be similar to the 140 MW power plant being built at a cost of R1.8-billion at the group’s Sasolburg complex, in South Africa’s Free State province.
The South African facility would also be fuelled by natural gas from Mozambique and the output would replace coal-fired power generation, enabling Sasol to reduce its carbon dioxide emissions from Sasolburg by a further one-million tons a year.
The first gas engines arrived at the Sasolburg complex in May 2012 and Ramon said commissioning was expected during the fourth quarter of 2012.
Sasol recently concluded an agreement with the local unit of Wärtsilä, of Finland, to operate and maintain the plant for three years.
“As a result of this and other projects, Sasol is on track to produce approximately 60% of its electricity requirements by 2013,” Ramon reported.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.