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Monday, 24 February 2014

Namibia closes deal for gas-to-power plant

Namibian power utility NamPower has reached a deal with Zambia’s Copperbelt Energy Corporation (CEC) to develop a much-delayed US$1.2-billion dollar gas-to-power plant in the sparsely populated desert country.

CEC will take a 30% stake in the Kudu project near Oranjemund in south-western Namibia, which will pump gas from the Kudu field about 170 km offshore to a combined cycle gas power plant. It will also buy up to 300 megwatts (MW) of electricity from the plant to supply mines in Zambia, Africa’s top copper producer.

Nampower will source US$ 1-billion dollars for the project while CEC is expected to contribute up to US 100-million dollars.Nampower is looking for another equity partner to finance the remaining US$100-million.

The plant will have a total capacity of up to 1,050 MW when completed in 2017, and will be connected to the Namibian and South African electricity grids for local and regional use.