On 15 June 2022, Eskom published on their tender board a request for information (“RFI”) for the supply of gas to their Komati power station. The RFI provides as follows:
Eskom is currently in the development phase of repowering Komati PS by converting it from coal-fired to gas-fired power station as an alternative. Gas repowering will expand Eskom’s clean energy portfolio at the Power Station. The focus is given towards the business needs and the energy mix to support Eskom’s long-term goal on the grid supply. A technical solution is required to determine the gas price and enable the conclusion of a feasibility study on the opportunity for gas-to-power at Komati Power Station.
Briefly, this involves the supply, delivery and transport of natural gas to Komati Power Station, in Middelburg, Mpumalanga, South Africa, including the design and construction of gas storage facilities, if required, and related infrastructure near the respective power plant. Indicative gas prices must cater for peaking load factor (5%-16%) for an open cycle operation (500 MW) and mid merit load factor (48%) for a combined cycle operation (750 MW). The indicative gas supply start date is May 2025. Interestingly, Eskom is also requesting a gas price in ZAR.
(Herewith link https://tenderbulletin.eskom.co.za/Tenders/Docs?TENDERID=60725 to download RFI)
For Bastion, and other onshore gas exploration companies, this presents an exciting opportunity and justifies our belief that gas must be part of the energy mix for a just energy transition particularly with the proximity to other power stations in the area. One of the Bastion TCP areas lies approximately 45km from the Komati power station. As Bastion and Bulwark continue to de-risk these onshore gas opportunities, we look forward to partnering with like-minded companies, development finance institutions and industry as joint venture partners, financiers, contractors and gas off-takers.
For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za
Barrisford Petersen
Founder and Managing Director
Bastion Oil and Gas South Africa (Pty) Ltd
Bulwark Oil And Gas Sa (Pty) Ltd
Rockit Energy (Pty) Ltd
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