Kudu scaled down to 442 MW

24 April 2018 | Energy

The Kudu gas-to-power project has been scaled down from an initial 800 megawatts (MW) to just 442 MW.

This is to allow it to fit into NamPower's future power-generation plans.

The announcement was made by deputy energy minister Kornelia Shilunga in a recent budget motivation in the National Assembly.

According to her, technical detail changes to the Kudu project have been made to make it a better fit for NamPower's long-term generation plans.

“Following a review of the process which began in July 2017, informed by the current regional power market dynamics, Kudu project stakeholders have made a decision to resize the Kudu power station to 442 megawatts, requiring 60 million standard cubic feet per day over a 25-year gas sales agreement,” Shilunga said.

“The lower gas off-take over a longer concession will make the Kudu power station a better fit within NamPower's generation needs and financial capabilities.”

Ownership of the Kudu project was changed when BW Offshore came in as the co-developer of the planned power station, which is to be developed near Oranjemund.

BW Offshore subsidiary BW Kudu took up a 56% stake in the Kudu licence, while the National Petroleum Corporation of Namibia (Namcor) holds the remaining 44% stake.

The Kudu gas field was discovered in 1974 by Chevron, about 170 kilometres offshore.

Subsequently various operators, including Shell and Tullow Oil, drilled a further seven appraisal wells before withdrawing from the concession after failing to secure a commercial outlet for the gas.

One of these outlets at one point also included South Africa's Eskom, for the sale of gas and electricity that was to be produced onshore at the planned Ubvlei power station.

It is believed that Kudu can remain in production for between 15 and 25 years

OGONE TLHAGE

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