Do More With Reuters
Partner Services

UPDATE 1-Gazprom to start building Namibia gas plant in Jan

Thu Nov 5, 2009 4:11pm IST
 
Email | Print | | Single Page
[-] Text [+]

* Understanding with Eskom for power purchase

* Eskom to buy 500 MW, Namibia to keep remaining 300 MW

(Adds details)

CAPE TOWN, Nov 5 (Reuters) - The construction of the long-delayed gas-to-power Kudu project in Namibia, expected to generate 800 megawatts of electricity, will start in January, the head of Gazprom International said on Thursday. Boris Ivanov, head of the international arm of Russian gas export monopoly Gazprom (GAZP.MM: Quote, Profile, Research), said Namibia had chosen Gazprom to set up a new consortium with Namcor and Tullow Oil (TLW.L: Quote, Profile, Research) to complete the historic project.

"We will build and will start the project in January ... that will be the first of a gas monetisation strategy that we are trying to implement in Africa in general and in Namibia in particular," Ivanov told an African oil conference in Cape Town.

Gazprom in June signed a memorandum of understanding with Namibia's Namcor to help organise funding for the $1.2 billion project. [ID:nLQ889047]

The project involves pumping gas from the Kudu field about 170 km (100 miles) offshore to an 800 MW combined cycle gas power station at the coast in the south of the country.

It has been delayed due to disagreement over commercial terms, as well as technical difficulties in piping the gas.

Ivanov said Gazprom had agreed for South Africa's utility Eskom [ESCJ.UL] to buy 500 MW of that power, with the remaining 300 MW to go to Namibia.

"We have made an understanding on paper with Eskom about a power purchase agreement for the future electricity offtake from this project ... Eskom wil be buying 500 MW ... 300 MW will go to the Namibian government," he said.

A Tullow Oil official said earlier this week that it would take up to 36 months from the signing of the deal to produce the first gas. (Reporting by Agnieszka Flak; Editing by Keiron Henderson)

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
Economy seen growing at 7.2 pct in FY10 - govt

The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget.  Full Article 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives
Greece's Finance Minister Papaconstantinou addresses reporters during a news conference in Athens, January 20, 2010.
Eurozone agreed in principle to aid Greece

Euro zone countries have decided in principle to help debt-stricken Greece, a senior German ruling coalition source said.  Full Article 

FROM THE MARKETS

After the Bell
After the Bell

Reuters Money's Kshitij Anand updates you on the movers and shakers of the Indian stock market.  Blog 

SHOWCASE

"Claw Back" Pay
"Claw Back" Pay

Banks and regulators hope that threats to "claw back" pay if trades later blow up will rein in risk taking on Wall Street.  Full Article 

 
James Saft
Blaming Asperger's

COLUMN - Did Asperger's help cause the financial crisis?  Full Article 

 
Going Global
Going Global

With Volvo, Chinese eye M&A abroad to win at home.  Full Article 

 
Delivery Woes
Delivery Woes

Boeing 787 delivery schedule could slip - experts.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage