Sunbird Energy and South Africa’s state-owned electricity utility Eskom have signed an agreement to study gas supply from the former’s offshore Ibhubesi gas project to the latter’s power plant
According to Sunbird Energy, both parties have agreed to jointly investigate the economic and commercial viability of the development of the Ibhubesi gas field, located off South Africa’s west coast, for use at the 1,350MW Ankerlig plant, about 40km north of Cape Town.
The terms of the deal include a working group from both sides would be established. Sunbird Energy is expected to complete the field development plan and engineering study for the gas project.
Eskom would complete the necessary studies to determine the work required, including government approvals and for the replacement of the existing diesel feed stock with natural gas.
While the Ankerlig plant generates most power from coal, it has also been running open-cycle turbines that need diesel to meet demand, according to company sources. The power company was now planning to replace diesel feedstock with natural gas at the station, Sunbird Energy added.
Will Barker, MD of Sunbird Energy, said, “A natural gas resource creates energy security. That encourages other explorers and developers to create a new industry on the west coast.”
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South Africa grants Sunbird Energy additional area for gas exploration
