South Africa's first gas-to-power tender fails on supply concerns
XOM•South Africa's first tender for private producers to generate 2,000 megawatts of power closed without a preferred bidder because bidders could not assure gas supply. Four bids totaling 2,830 MW had been received in May.
1. Bids lacked supply assurances
South Africa's energy and electricity ministry said the tender closed without a preferred bidder after bidders were unable to provide the required assurances of gas supply. The Independent Power Producers office received four bids in May, totaling 2,830 MW.
2. Gas supply remains a challenge
South Africa imports most of its gas from Mozambique, where declining volumes threaten domestic industrial users and supplies are expected to run dry in a few years. The country is developing its first liquefied natural gas import terminal, with ExxonMobil and Eskom as anchor clients. The ministry gave no indication of when another gas procurement window would open, but said South Africa remains committed to its gas-to-power objectives.
