Zimbabwe wants to fast track Invictus’ Cabora Bassa gas project
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Special Report: The Zimbabwe government has deemed Invictus Energy’s gas project as crucial to its economy.
Invictus Energy’s (ASX:IVZ) Cabora Bassa gas project has been given a leg up, with the Zimbabwe government identifying it as a priority development project for the African nation.
“Zimbabwe and Southern Africa is in the midst of an energy crises with the region enduring acute energy shortages which is hampering industry and economic growth,” managing director Scott Macmillan said.
To help overcome this, the Ministry of Mines and Mining Development has been tasked with identifying priority projects to be implemented under the new Zimbabwe government’s 100-day cycle initiative.
The new label means the project will be fast tracked through various approvals processes, including the finalisation of a production sharing agreement (PSA) with the Republic of Zimbabwe.
Invictus says the PSA will ensure that a predictable, stable and transparent legal and fiscal regime is put in place that is commensurate with terms in the region, follows international best industry practice and meets the country’s aspirations.
Invictus is making swift progress on its Cabora Bassa project, having already locked in two lucrative supply deals.
Just before Christmas the company inked a non-binding MoU with Tatanga Energy to jointly investigate the economic and commercial viability of supplying gas to Tatanga’s proposed 500-megawatt (MW) plant that will supply electricity to the national grid and captive clients in Zimbabwe, Zambia and Mozambique.
Minimum gas supply covered by the MoU is about 11 billion cubic feet (Bcf) per year and could be increased to about 36.5Bcf per annum.
“This MoU demonstrates the huge local gas demand in an energy starved market in Zimbabwe and we expect to enter into additional gas supply MoUs in the future,” Macmillan said.
Invictus also previously secured an MoU to supply Sable Chemical Industries with 70 million cubic feet of gas per day for a 20-year period to replace imported ammonia for the production of fertiliser.
Demonstrating just how prospective the Cabora Bassa project is, the maximum gas supply of 730Bcf covered under the most recent MoU represents just 8 per cent of the project’s potential.
NOW WATCH: 90 Seconds With… Scott Macmillan, Invictus