Invictus Energy Limited has updated its Gas Supply memorandum of Understanding (MoU) with Mbuyu Energy for the supply of gas to their proposed 500 MW Gas to Power project.
Invictus is an independent upstream oil and gas company headquartered and listed on the Australian Securities Exchange with offices in Harare.
The energy utility company will supply the gas for the project from its 80% owned and operated Cabora Bassa Project in Zimbabwe.
In a statement, Invictus Energy announced that the company along with One Gas Resources have executed an updated Gas Supply MOU with Mbuyu Energy, a Zimbabwean consortium led by IPP developer Tatanga Energy.
The consortium, which includes existing Invictus' institutional shareholder Mangwana Opportunities Fund, is seeking to develop a 500MW Gas to Power project.
Following the recent confirmation of the discovery of gas at the Cabora Bassa Project, the updated MOU builds on the previous MOU signed in December 2019 with Tatanga Energy.
According to Invictus, the MOU is a precursor to the negotiation of a full Long Term Gas Sale Agreement ("GSA") to supply sufficient gas to power the proposed plant.
Invictus managing director Scott Macmillan said the MoU was a step towards commercialisation.
"Signing this MOU with Mbuyu Energy to develop a 1,000MW Gas to Power project is another significant step forward in our early commercialisation strategy as we look to progress the Cabora Bassa project following our gas discovery at Mukuyu," said Macmillan.
"The potential offtake is a substantial volume of gas of up to 1.4 trillion cubic feet which will underpin the commercialisation of the Mukuyu gas field. This MOU demonstrates the huge demand in an energy-starved market in Zimbabwe and the wider region."
According to the managing director, natural gas and power are in high demand in southern Africa due to increasing supply shortages of natural gas from mature fields that are now in decline and the retirement of over 10,000 MW of ageing coal-fired power infrastructure in the region and the increasing adoption of gas for industrial use and as a source of cleaner energy.
Mbuyu Energy Director, Tunde Akerele said the MoU will unlock and pave the way for a cleaner and more sustainable energy future for Zimbabwe.
"This MoU signifies a critical step forward in transitioning Zimbabwe away from its reliance on coal power generation and towards a more diversified energy mix that includes natural gas and renewables. The introduction of much-needed dispatchable energy for the national grid will enhance energy security, and reliability, and facilitate the increased integration of renewables.
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"We are confident that the Gas-to-Power Project represents a turning point for Zimbabwe's energy sector and its journey towards a cleaner and more prosperous future. We look forward to collaborating with Invictus, One Gas Resources, and all stakeholders to bring this transformative project to fruition and unlock a brighter energy and economic future for the nation," said Akerele.
The project has significant potential to drive economic growth, fostering new industries, creating jobs, and stimulating broader economic development across Zimbabwe.
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