South Africa's first gas-to-power tender falls through

A man walks beneath electricity pylons in Orlando, Soweto. Image credit: Reuters/Siphiwe Sibeko

After many delays, the Independent Power Producers office received four bids in May totalling 2,830 MW

The request for proposals required bidders to provide assurances of gas supply, but the minister said in a statement they couldn’t.

South Africa imports most of its gas from Mozambique, where declining volumes threaten to disrupt domestic industrial users, as supplies are expected to run dry in a few years.

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Africa’s most advanced economy is pivoting toward gas to reduce its dependence on coal-fired power stations and is developing its first liquefied natural gas import terminal with ExxonMobil and Eskom as anchor clients.

No indication exists of when the next gas procurement window will open, although South Africa remains committed to its gas-to-power objectives.