Imported LNG set to kick-start gas-to-power vision – Sasol Imported LNG set to kick-start gas-to-power vision – Sasol ZETDC close to 106MW power supply contracts ZETDC close to 106MW power supply contracts Zambia asks SA for 300 MW of emergency power Mozambique: Ncondezi Signs Deal With Shanghai Electric Power Mozambique: Ncondezi Signs Deal With Shanghai Electric Power China considers building Namibia naval base Ghana, Vitol and ENI announce transformational gas project for Ghana Malawi, China Agrees Into Economic and Technical Cooperation China puts screws on Zim wants to safeguard its loans Intra-Africa trade is growing, slowly Burkina Faso and Mali to join forces to counter Islamist attacks Minergy to boost Southern Africa energy deficit with Botswana coal project British, Chinese companies to develop Moz coal mine, power station project British, Chinese companies to develop Moz coal mine, power station project Imported liquefied natural gas (LNG) is expected to initiate the greater use of gas in South Africa’s currently coal-dominated electricity generation. Anticipated is the establishment of infrastructure at South African ports, such as Saldanha Bay, Coega or Richards Bay, to facilitate the importation of LNG, and the generation of power at port areas using the country’s existing electricity grid for its distribution. Print Send to Friend 2 0 Gas-to-power is seen as a potential key to unlock an early start to the process, which is being driven by South Africa’s Department of Energy (DoE) as custodian of the procurement process for independent power producers (IPPs). “We’re looking at how we will participate in that,” Sasol VP business development power and gas Kribs Govender told a media roundtable attended by Creamer Media’s Engineering News Online. Johannesburg- and New York-listed Sasol, which is already using its own gas to generate 440 MW of low-carbon power into the South African electricity grid, is awaiting a DoE tender for the generation of 3 126 MW of gas-fired power, which is expected to be invited in the first half of 2016. While imported LNG is set to be the key initial enabler, over time it is envisaged that indigenous gas discovery and development will make inroads and gas pipeline reticulation will provide the logistics for gas to feature in South Africa’s currently coal-dominated energy mix. Imported liquefied natural gas (LNG) is expected to initiate the greater use of gas in South Africa’s currently coal-dominated electricity generation. Anticipated is the establishment of infrastructure at South African ports, such as Saldanha Bay, Coega or Richards Bay, to facilitate the importation of LNG, and the generation of power at port areas using the country’s existing electricity grid for its distribution. Print Send to Friend 2 0 Gas-to-power is seen as a potential key to unlock an early start to the process, which is being driven by South Africa’s Department of Energy (DoE) as custodian of the procurement process for independent power producers (IPPs). “We’re looking at how we will participate in that,” Sasol VP business development power and gas Kribs Govender told a media roundtable attended by Creamer Media’s Engineering News Online. Johannesburg- and New York-listed Sasol, which is already using its own gas to generate 440 MW of low-carbon power into the South African electricity grid, is awaiting a DoE tender for the generation of 3 126 MW of gas-fired power, which is expected to be invited in the first half of 2016. While imported LNG is set to be the key initial enabler, over time it is envisaged that indigenous gas discovery and development will make inroads and gas pipeline reticulation will provide the logistics for gas to feature in South Africa’s currently coal-dominated energy mix. THE Zimbabwe Electricity Transmission and Distribution Company has made progress towards concluding power supply agreements with regional utilities anticipated to feed at least 106 megawatts into the national grid between December and early next year. Power utility, Zesa Holdings transmission and distribution unit, ZETDC has engaged South Africa’s ESKOM, Mozambique’s Hydro Cahorra Bassa and independent producer, Lusengwa of Zambia.ZETDC managing director Engineer Julian Chinembiri confirmed in an interview yesterday that the negotiations are ongoing with a number of regional utilities for supply contracts. “HCB officials are coming to Zimbabwe in the first week of December. We are seeking an additional 50 megawatts from them. With ESKOM, we are looking at next week (to hear what they say), they have their own problems so they have to consult the board and their local energy regulator,” Eng Chinembiri said. He said they would accept any reasonable amount of power supply ESKOM can spare considering South Africa is also battling shortages. THE Zimbabwe Electricity Transmission and Distribution Company has made progress towards concluding power supply agreements with regional utilities anticipated to feed at least 106 megawatts into the national grid between December and early next year. Power utility, Zesa Holdings transmission and distribution unit, ZETDC has engaged South Africa’s ESKOM, Mozambique’s Hydro Cahorra Bassa and independent producer, Lusengwa of Zambia.ZETDC managing director Engineer Julian Chinembiri confirmed in an interview yesterday that the negotiations are ongoing with a number of regional utilities for supply contracts. “HCB officials are coming to Zimbabwe in the first week of December. We are seeking an additional 50 megawatts from them. With ESKOM, we are looking at next week (to hear what they say), they have their own problems so they have to consult the board and their local energy regulator,” Eng Chinembiri said. He said they would accept any reasonable amount of power supply ESKOM can spare considering South Africa is also battling shortages. Electricity crunch has hit mining companies. Zambia asked South Africa on Thursday for up to 300 megawatts (MW) of emergency power to ease an electricity crunch that has hit mining companies already grappling with a slide in global copper prices, its embassy said.Energy minister Dora Siliya made the request in a meeting with South African President Jacob Zuma and his energy minister, according to a post on the Facebook page of Zambian High Commissioner to Pretoria Emmanuel Mwamba.South African energy ministry officials did not respond to requests for comment.Zambia’s power grid can generate up to 2,200 MW, most of it from hydro power, but supply is often erratic and output has been hit by low water levels in dams stemming from a severe drought across the region.The landlocked country, Africa’s biggest copper producer after Democratic Republic of Congo, was plunged into almost nationwide blackouts twice last month. --Reuters The London based company Ncondezi Energy announced on Monday that it has signed a binding Joint Development Agreement with Shanghai Electric Power Company to develop the Ncondezi power project in the western Mozambican province of Tete. Under the agreement Shanghai Electric Power Company will become the controlling shareholder in a new 300 megawatt coal-fired power station. It will invest up to 25.5 million US dollars and receive a sixty per cent share in the power project. Ncondezi Energy will retain full ownership of the coal mine, which will be financed and developed separately to the power project. Unlike neighbouring coal projects, Ncondezi is focussed on meeting Mozambican demand for electricity, using its own thermal coal. It is thus, unlike other mining companies in Tete, not dependent on rail and port infrastructure to move coal to ports for exports.Ncondezi's coal mine will be an open cast operation with a target output of 1.3 million tonnes per annum. In the first stage of the power project, 300 megawatts of electricity will be produced. However, Ncondezi plans to expand this in stages to 1,800 megawatts. The London based company Ncondezi Energy announced on Monday that it has signed a binding Joint Development Agreement with Shanghai Electric Power Company to develop the Ncondezi power project in the western Mozambican province of Tete. Under the agreement Shanghai Electric Power Company will become the controlling shareholder in a new 300 megawatt coal-fired power station. It will invest up to 25.5 million US dollars and receive a sixty per cent share in the power project. Ncondezi Energy will retain full ownership of the coal mine, which will be financed and developed separately to the power project. Unlike neighbouring coal projects, Ncondezi is focussed on meeting Mozambican demand for electricity, using its own thermal coal. It is thus, unlike other mining companies in Tete, not dependent on rail and port infrastructure to move coal to ports for exports.Ncondezi's coal mine will be an open cast operation with a target output of 1.3 million tonnes per annum. In the first stage of the power project, 300 megawatts of electricity will be produced. However, Ncondezi plans to expand this in stages to 1,800 megawatts. China has proposed building a base for its Navy in the Namibian port of Walvis ay and a delegation will visit the country to discuss the project, the Namibian newspaper reported today, citing a letter from Namibia's ambassador to China to the country's foreign affairs ministry. The Dec. 22 letter from Ambassador RINGO ABED to foreign affairs permanent secretary SELMA ASHIPALA-MUSAVYI said the former had met GENG YANSHENG, China's defense ministry spokesperson, the newspaper reported. YANSHENG in Nov. denied media reports that China was planning a number of naval bases in Asia and Africa. "Namibia has had problems with illegal fishing trawlers in its waters... A Chinese naval presence will deter any would-be illegal trawlers and smugglers", ABED cited YANSHENG as saying in the meeting. MONICA SHEYA, a spokesperson for Namibia's defence ministry, said she had no knowledge of the plan. Namibia's foreign ministry said it wasn't immediately able to comment. Ghana's Energy Minister, Kofi Buah, joined Ian Taylor, President and CEO of Vitol and Ciro Pagano EVP, ENI, today to symbolically kick off activities marketing the commencement of the OCTP development in Ghana, following the recent approval of the development plans by the Ministry of Energy. This was evinced when the development partners paid a courtesy call on The President of Ghana, His Excellency President John Dramani Mahama, at the Peduase Lodge, Aburi, Ghana, to confirm their commitment to the project. The OCTP development comprises five fields1 (Sankofa East Cenomanian Oil, Sankofa East, Campanian Oil, Sankofa Main Gas, Sankofa East Gas, Gye Nyame Gas), and will access approximately 1.5 trillion cubic feet (tcf) of gas-in-place and around 500 million barrels of oil-in-place. The development of the pure gas fields contained in the project has been described by the World Bank as a 'top priority'2 for Ghana, as it will underpin the growth of a domestic thermal power sector and accelerate Ghana's industrial development. This is the first major development of gas in Ghana and will enable the transformation of the economy. The fields contain enough gas to continuously supply Ghana's thermal power sector until at least 2036. The non-associated gas will be produced at high rates, supplying both new and existing power plants, substituting crude oil and fuel oil and providing an environmentally cleaner and more efficient fuel for the country. In addition to the energy source, Ghana will benefit from enhanced oil Finance,Economic Planning and Development Hon.Goodal Gondwe and the Chinese Amb,to Malawi,HE.Mr.Zhang Qingyang during the signing ceremony at Capital Hill - Pic by Stanley Makuti Lilongwe, January 30, 2015, Mana: The Malawi Government and the Government of the People's Republic of China on Thursday entered into two agreements on Economic and Technical Cooperation. Under the two agreements, the People's Republic of China has given Malawi a sum of US$16 million grant and US$ 8 million loan. Speaking after the signing ceremony of the two agreements, Minister of Finance Economic Planning and Development Dr. Goodall Gondwe said the first agreement is for the grant amounting to US$ 16 million and the second one is an interest free loan worthy US$ 8 million. The Chinese government is seeking the secondment of its officials to key Zimbabwe parastatals to ensure that Chinese loans for government projects are not lost to “leakages”, it emerged this week. A Chinese delegation was in Zimbabwe to lay the groundwork for the implementation of economic agreements signed in August by the two countries. There are now concerns from some government officials that the Chinese government is angling for a greater stake in, and control of, Zimbabwe’s natural resources and government entities before the agreements are implemented. Zimbabwe has so far failed to get the $27-billion it is seeking to implement its ambitious economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset), which the government sees as a panacea to the country’s economic problems. Zimbabwe signed a number of memorandums of understanding with China during President Robert Mugabe’s visit there last year, which the government said would kick-start the implementation of ZimAsset and aid efforts to revive the economy. China pledged to assist Zimbabwe in implementing infrastructure ­projects in various sectors of the economy, including power generation, water, telecommunications, agriculture and mining. Africa needs to soften its borders, and expand intra-regional trade. This was a repeated call at this year’s World Economic Forum (WEF) in Davos, Switzerland. In a panel discussion on CNBC, held at WEF, Sunil Bharti Mittal, chairman of Bharti Enterprises, puts intra-Africa trade at 9% of the continent’s overall trade. “That needs to rise,” he says. Mittal calls attention to a common situation: products are shipped to Asia to be processed, only to be imported back to Africa. “You need to have much more alignment in Africa. The AU (African Union) needs to start discussing massive infrastructure linkages within the countries – wherever possible around the coastal areas, you need to link the continent,” he says Burkina Faso and Mali have agreed to work together to counter the growing threat of Islamic militants in West Africa, by sharing intelligence and conducting joint security patrols following two deadly and well- coordinated attacks in the region. Their prime ministers met on Sunday, two days after al Qaeda militants seized the Splendid Hotel in Burkina Faso’s capital Ouagadougou, opened fire on a restaurant and attacked another hotel nearby, killing at least 28 people from at least seven countries, and wounding 50 other people. The assault, claimed by al Qaeda in the Islamic Maghreb (Aqim), follows a similar raid in November on a luxury hot Coal exploration company Minergy is looking to assist in Southern Africa’s energy deficit crisis with its large, shallow, low cost Masama coal project in Botswana. “Minergy’s Masama project is a unique coal asset, with high quality coal at opencast mining depths. Situated within Botswana’s premier Mmamabula Coalfield, Masama’s location is low risk with excellent existing infrastructure nearby. It presents a range of scalable development opportunities at low capital intensity,” says Claude de Bruin, Executive Director of Minergy. Minergy’s flagship asset comprises a reported 2.8 Bt export-quality coal deposit and covers about 700 square kilometres. “We have a diversified value extraction strategy for the asset, consisting of a three-pronged approach that includes supplying the roughly 16 Mtpa regional merchant coal trading market. South Africa is a sizeable proportion of this market and coal from Masama would be delivered to customers on existing infrastructure in very close proximity to open-castable portions of the coal deposit,” says de Bruin. The electricity supply situation in Southern Africa has changed significantly over the past few years, with national power generators finding it increasingly difficult to meet domestic electricity requirements. AIM-listed company Ncondezi Energy has entered into a binding joint development agreement (JDA) with China’s Shanghai Electric Power Company (SEP) to develop the Ncondezi coal mine and thermal power station project in Mozambique, in the province of Tete. The deal results in SEP becoming a strategic investor in the Mozambique project. As a result of the agreement, a holding company will be set up which will hold 100% of the project; this will be the Ncondezi Power Company (NPC – currently, Ncondezi Energy directly owns 100% of the project). SEP will own 60% of the NPC. In return, SEP is investing up to $25.5-million in the development of the project up to the point of financial close. This will be paid, in agreed instalments, between January 1 and financial close. The first instalment will be paid when the JDA becomes effective and certain SEP conditions are met. Following the financial close of the project, the NPC will pay Ncondezi Energy another $35-million. The Ncondezi project involves the development of a thermal coal mine in the coal-rich Mozambican province. This will be used to feed a thermal power station that will generate electricity for the country’s domestic market. AIM-listed company Ncondezi Energy has entered into a binding joint development agreement (JDA) with China’s Shanghai Electric Power Company (SEP) to develop the Ncondezi coal mine and thermal power station project in Mozambique, in the province of Tete. The deal results in SEP becoming a strategic investor in the Mozambique project. As a result of the agreement, a holding company will be set up which will hold 100% of the project; this will be the Ncondezi Power Company (NPC – currently, Ncondezi Energy directly owns 100% of the project). SEP will own 60% of the NPC. In return, SEP is investing up to $25.5-million in the development of the project up to the point of financial close. This will be paid, in agreed instalments, between January 1 and financial close. The first instalment will be paid when the JDA becomes effective and certain SEP conditions are met. Following the financial close of the project, the NPC will pay Ncondezi Energy another $35-million. The Ncondezi project involves the development of a thermal coal mine in the coal-rich Mozambican province. This will be used to feed a thermal power station that will generate electricity for the country’s domestic market.