- Invictus Energy (IVZ) has entered a non-binding memorandum of understanding with Tatanga Energy
- The Cabora Bassa Project will use the MOU to progress gas supply for a 500-megawatt gas-to-power plant
- Both companies will work together to investigate the economic and commercial viability of supplying gas from the project to the plant
- Invictus’ share price is up a steady 5.56 per cent, with shares currently trading for 2.9 cents apiece
Invictus Energy (IVZ) has entered a non-binding memorandum of understanding (MOU) with Tatanga Energy to progress gas supply in Muzarabani.
The Cabora Bassa Project partners, 80 per cent Invictus and 20 per cent One-Gas Resources, will use the MOU to progress gas supply for a +500 megawatt (MW) Gas to Power Plant in the event of a commercial gas discovery from Special Grant 4571.
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 Cabora to the Gas to Power Plant.
This will then be sold to the national grid and to other captive clients including mines, industrial and other large consumers of energy in Zimbabwe, Mozambique and Zambia.
The key terms of the MOU include a minimum daily contract quantity (DCQ) of 30 mmscf/d (million standard cubic feet per day), which Tatanga can increase this to 100 mmscf/d.
The minimum total contract quantity consists of 219 billion cubic feet while the maximum total contract quantity consists of 730 billion cubic feet.
The supply term is 20 years from the date of first commercial gas production and the gas sales price is confidential.
This proposed Gas to Power Plant will be built in two phases with the first phase estimated at +150MW and the second phase consisting of an additional +350MW.
The optimal location of the plant will be determined by factors such as proposed pipeline routings and access to transmission infrastructure including the Southern Africa Power Pool (SAPP).
Preliminary studies have identified a number of suitable locations that provide the ability to supply electricity to the local grid as well as export customers through the SAPP.
“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,” Managing Director Scott Macmillan stated.
“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,” he added.
Invictus’ share price is up a steady 5.56 per cent, with shares currently trading for 2.9 cents apiece.