Invictus Inks Zimbabwe Gas MoU
Africa-focused Invictus Energy and its partner in Zimbabwe’s Cabora Bassa project, One-Gas Resources, have entered into a non-binding memorandum of understanding (MoU) with Sable Chemical Industries for supply of gas from the project.
The gas supply from the project is subject to a commercial gas discovery being made from SG 4571 permit, Invictus said May 7. According to the company, the Cabora Bassa project encompasses the Mzarabani Prospect, a multi-trillion ft3 conventional gas-condensate target which is potentially the largest, un-drilled seismically defined structure onshore Africa.
Under the MoU, Invictus will supply up to 70mn ft3/day for 20 years. The parties will look to sign the final gas sales and purchase agreement by 2021. Sable will upgrade its existing process and replace the feedstock with natural gas, Invictus said.
“The potential gas supply of up to 70mn ft3/day for 20 years is a substantial volume which will help underpin the development of any commercial gas discovery we make in the Cabora Bassa Project. 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,” Invictus managing director Scott Macmillan said.
Sable Chemicals was established in 1969 and operates a fertilizer manufacturing plant which produces ammonium nitrate fertilizers from ammonia gas feedstock which is now imported from South Africa.