Petroleum Africa
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Wednesday, April 24, 2024
Invictus Energy has signed an MoU with mine operator Dallaglio Investments and power generation firm Himoinsa Southern Africa Proprietary for a proposed gas-to-power project to supply electricity to power the Eureka Gold Mine in Zimbabwe.
Invictus Energy and One Gas Resources through Geo Associates (Private) Limited have executed an MoU with Dallaglio and Himoinsa to supply natural gas from the company’s Cabora Bassa Project as feedstock for a gas-to-power project to Eureka, one of Zimbabwe’s largest mines, owned and operated by Dallaglio. The Eureka project is located 50km south of the Mukuyu gas field.
The proposed power generation plant and equipment will be provided by Himoinsa with a notional capacity of 12MW, with the ability to increase the plant capacity size up to 50MW.
Power generated would be supplied to Eureka or other private off-takers through the local grid or into the Southern Africa Power Pool (SAPP) if excess supply is available. Following recent confirmation of the Mukuyu gas-condensate discovery at the Cabora Bassa Project, Invictus is positioning itself to capture early monetization opportunities and accelerate timelines to first production and revenue generation.
High-quality natural gas discovered at Mukuyu-2 contains minimal impurities and allows for a simple early production system at the wellsite to produce for gas to be used in power generation or compressed natural gas for delivery to onsite power generation at Eureka.
This will minimize the Company’s capital and surface processing infrastructure requirements for the pilot project as well as in the future full field developments.
The MoU provides flexibility to grow the pilot project incrementally through modular expansion as the resource base grows and additional power offtakers are signed up.
The pilot will also provide proof of concept for future full field development and large-scale gas-to-power project development. A feasibility study will be undertaken to determine the optimal delivery of power to Eureka – either wellsite generation of power and wheeling, utilizing the existing grid infrastructure which is located within 5 kilometers of Mukuyu-2 or onsite generation with natural gas transported via truck between wellsite and the power plant.
Following completion of the feasibility study, Invictus and Himoinsa intend to execute a binding Gas Sale and Purchase Agreement (GSPA), under which the Company will provide natural gas to Himoinsa, which in turn will provide power generation equipment and supply electricity to Dallaglio at Eureka, under back-to-back GSPA and Power Purchase Agreements (PPAs).
Part of the feasibility study involves the company assessing the use of Mukuyu-2, post well testing, as a producer in the pilot project.
Expansion of the pilot can be matched to gas deliverability from the Mukuyu Gas Field through Himoinsa’s turnkey power generation systems.
Himoinsa currently provides supplementary and backup diesel power generation to Eureka and Dallaglio’s other mining operations in Zimbabwe.
Gas-fired power will provide Eureka with a reliable and cleaner source of energy than the current coal fired power and backup diesel power generation, which is used during frequent power outages experienced in the country. The pilot will also gather longer term production data and dynamic reservoir information to assist in optimizing the full field development planning and determining connected resource volumes and development well locations and sequencing.
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