Invictus Energy Seals Gas Sales Agreement to Power Zimbabwe’s Eureka Mine

Under the agreement, the project will utilize gas from the Cabora Bassa Project to electrify the Eureka gold mine

By Stermy 4 Min Read

Invictus Energy Limited, an independent upstream oil and gas company, has entered into a Memorandum of Understanding (MoU) with mine operator Dallaglio Investments and power generation firm Himoinsa Southern Africa Proprietary for a gas-to-power project in Zimbabwe.

This initiative aims to produce electricity to support operations at the Eureka Gold Mine, a significant player in the country’s mining sector.

The partnership entails utilizing gas extracted from the Cabora Bassa Project to power operations at the Eureka mine, situated 50km from the Mukuyu-2 wellsite. The African Energy Chamber (AEC) lauds this collaboration, recognizing it as a positive step towards enhancing energy access, efficiency, and reliability within Zimbabwe’s mining industry.

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Led by Himoinsa, the proposed power generation facility is expected to start with an initial capacity of 12MW, with plans for expansion up to 50MW.

Shifting from diesel-fired to gas-fired power promises a more reliable and eco-friendly energy supply for the Eureka mine, while also facilitating essential data collection for optimizing full-field development planning and determining resource volumes and locations.

The MoU allows for incremental project growth and additional power off-take agreements, with ongoing feasibility studies to identify the most suitable power delivery method for Eureka. Options include on-site generation or utilizing the existing grid infrastructure located 5km away, combined with wellsite power generation.

Upon completion of the feasibility study, Invictus Energy and Himoinsa aim to formalize a binding Gas Sale and Purchase Agreement, ensuring the provision of natural gas for power generation and subsequent electricity supply to Dallaglio at Eureka on mutually beneficial terms.

Beyond Zimbabwe, the electricity generated from this project holds potential to serve other private off-takers through local grids or the Southern Africa Power Pool (SAPP), a regional integrated power network.

As energy demand rises across the continent, initiatives like this highlight the viability of leveraging indigenous energy resources to meet growing electricity needs. Invictus Energy has already inked a gas supply deal with Zimbabwe’s Mbuyu Energy, with a 500MW power project in the pipeline.

The recent confirmation of the Mukuyu gas-condensate discovery at the Cabora Bassa Project has further spurred Invictus Energy’s efforts towards early monetization strategies and accelerated production timelines.

The high-quality natural gas found at Mukuyu-2 is expected to facilitate a streamlined early production system, minimizing infrastructure requirements and paving the way for future full-field developments.

NJ Ayuk, Executive Chairman of the AEC, emphasizes the significance of this initiative for Zimbabwe’s energy sector and gold mining industry, aligning with the country’s vision for sustainable energy development.

He sees it as a testament to African nations’ potential to leverage indigenous resources for sustainable development, unlocking new opportunities for economic growth and energy security in Zimbabwe and the broader African region.

Zimbabwe’s progress in gas-to-power initiatives can serve as a model for other Southern African countries seeking to enhance energy security and drive economic growth through sustainable energy solutions.

Given gold’s importance as a major export commodity for Zimbabwe, securing a sustainable electricity supply will help boost production and overall economic prosperity.

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By Stermy
Stermy is one Crazy fan of the word "Internet". Always online to stay informed and keep others updated. #townflex