Resized Kudu affordable - Namcor

31 January 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) is confident that the revised Kudu gas-to-power project, which will now only supply energy to the local market, will be cheaper and more affordable than originally anticipated.

This is according to Namcor spokesperson Utaara Hoveka who recently provided an update on the matter.

“We finalised the technical and engineering studies in terms of the reduced project size. We finalised the recosting of the project. We reran the project economics, which affirmed the viability of the project,” he said.

Without giving an exact amount, Hoveka said the revised project costs were substantially lower than initial estimates.

“We reconfigured the size of the project, to only cater for the Namibian domestic market. As you will know, the initial idea was to cater for both the Namibian domestic market as well as export markets,” Hoveka said.

“We continue to engage government on the type of support framework that the project will require. Some of those elements are acceptable to government, while others are not. We anticipate the finalisation of these engagements pretty soon, which will give direction on the future of the project.”

NamPower did not comment, saying the Kudu task team is not available this week.

Namibia's offshore Kudu gas fields have recoverable reserves estimated at more than 3.3 trillion cubic feet and are a central part of the country's plans to reduce its dependence on electricity imports.

The project has however been delayed since the discovery of the gas fields by Chevron in 1974.

The continued failure to develop the project prompted energy minister Tom Alweendo to air his scepticism over whether it will ever get off the ground.

Alweendo, speaking to the Namibian Broadcasting Corporation (NBC), said he was not sure the project would take off after years of delays due to the related export agreements.

“I have been hearing this thing for a very long time now, but I am not convinced that it is viable, unless you show me otherwise,” Alweendo said.

“If it was viable it would have happened already. If it did not happen for the last 25 years, there is something wrong.”

The project's estimated costs had run into billions of dollars and it would entail gas from the offshore field being transferred to a floating production system before being piped some 170 kilometres to a planned power plant at Oranjemund along the coast.

NamPower said in April last year the planned Kudu power station would be resized from 850 megawatts (MW) down to 442.5 MW, after off-take agreements with South Africa's power utility Eskom and Zambia's Copperbelt Energy Corporation failed to materialise.

OGONE TLHAGE

Similar News

 

Fuel prices expected to remain meek

2 months ago - 04 June 2020 | Energy

Phillepus Uusiku- The association between the Organisation of Petroleum Exporting Countries (OPEC) and independent oil producers such as Russia reached an agreement last month to...

Zambia denies expropriation

2 months ago - 04 June 2020 | Energy

Zambia's government said on Wednesday it had no intention of taking over Copperbelt Energy Corp (CEC), after the company accused the government of expropriating its...

Angola's oil output to drop

2 months ago - 02 June 2020 | Energy

Oil production in Angola will fall to 1.3 million barrels per day due to the cancellation or postponement of investments planned for this year, Banco...

NamPower to electrify 1 000 households

2 months ago - 29 May 2020 | Energy

ELLANIE SMIT WINDHOEK NamPower is set to electrify 1 000 households in Windhoek's peri-urban areas at a cost of N$15.5 million. This was announced yesterday...

Covid-19 delays oil exploration in Kavango

2 months ago - 22 May 2020 | Energy

KENYA KAMBOWE KAWE Reconnaissance Energy Africa (ReconAfrica), which has an interest in exploring oil and gas in the Kavango basin,...

Alweendo optimistic about renewable energy prospects

2 months ago - 19 May 2020 | Energy

NAMPAKHORIXASThe ministry of mines and energy is optimistic about the future of the renewable energy sector and the growing presence of international oil companies in...

Fuel retailers scramble to avoid losses

2 months ago - 11 May 2020 | Energy

JANA-MARI SMITH WINDHOEK A brief stock shortage of petrol and diesel last Wednesday at some fuel stations was due to savings measures...

Fuel price drop to bring some relief

3 months ago - 07 May 2020 | Energy

OGONE TLHAGE WINDHOEK With fuel prices dropping by a further N$1 a litre, economists differed on whether this will indeed have a...

17 hours of darkness for northern towns

3 months ago - 17 April 2020 | Energy

ILENI NANDJATOOKATOPEA broken crossarm on a power line left parts of the north without electricity for several hours this week.The 66kV line between Okatope and...

Dundee Precious Metals Tsumeb reaffirms support to the Tsumeb...

3 months ago - 09 April 2020 | Energy

Dundee Precious Metals Tsumeb reaffirmed its support to the Tsumeb community by improving the preparedness levels of the Tsumeb District hospital should the COVID-19 virus...

Latest News

Nacc prohibits proposed Chinese merger

13 hours ago | Business

Phillepus Uusiku The Namibia Competition Commission (NaCC) made a decision to prohibit the acquisition of Schwenk Namibia Pty Ltd by West China Cement Limited due...

River-crossing fugitive in custody

13 hours ago | Crime

OGONE TLHAGEWINDHOEKImmanuel David, a Namibian-born South African passport holder who entered the country illegally by crossing the Orange River in a canoe in June, has...

Harambee goal down the toilet

13 hours ago | Government

Jo-Maré Duddy WINDHOEK Of the 50 000 toilets in informal settlements in rural areas President Hage Geingob promised in his Harambee Prosperity Plan (HPP)...

Contraceptive shortage: 27 900 unintended...

13 hours ago | Health

JEMIMA BEUKESWINDHOEKA study predicts that up to 27 900 unintended pregnancies may occur in Namibia because of a shortage of contraceptives brought about by the...

RFA spend massive amounts

13 hours ago | Economics

The Road Fund Administration (RFA) has over the past five-years allocated N$ 177.2 million to the City of Windhoek towards road maintenance and traffic law...

Rid Namibian police of rogue...

13 hours ago | Opinion

Videos of Namibian police officers assaulting alleged illegal immigrants from Zambia are a continuation of many violations that have become common place within the national...

'Covid-19 used for hidden agendas'

13 hours ago | Labour

ELLANIE SMIT WINDHOEK The Trade Union Congress of Namibia (Tucna) yesterday accused government of purposefully using the Covid-19 pandemic to clandestinely and deliberately destroy parastatals,...

Otavi man commits suicide by...

13 hours ago | Crime

NAMPAOTJIWARONGOA 30-year-old man from Otavi committed suicide by allegedly drinking acid on Monday.Otjozondjupa police spokesperson, Inspector Maureen Mbeha, said yesterday the deceased has been identified...

N$5.5m for wildlife protection

13 hours ago | Environment

ELLANIE SMIT WINDHOEK The Game Product Trust Fund (GPTF) has become increasingly important in protecting wildlife due to a lack of funding from government. The...

Load More