Siemens mulls bid for South Africa gas-to-power project

Siemens is reportedly considering entering a bid for a $3.7bn gas-to-power project in South Africa.

Sabine Dall’Omo (pictured), Siemens South Africa CEO, told the Bloomberg news service that “the process is moving” and that “significant discussions” have taken place around building 3 GW of LNG-fuelled generation capacity at South Africa’s Richards Bay and Coega ports.

According to the country’s energy ministry, the plant at Richards Bay is planned to generate 2 GW from imported LNG, while the Coega plant will generate an additional 1 GW.

The government is seeking bidders for both projects, with their power to be sold to state utility Eskom under a 20-year power purchase agreement. The energy ministry said bidding teams will pre-qualify in spring 2017, with a final request for proposals planned for late summer.

Dall’Omo said Siemens will need to clarify Eskom’s potential role before moving forward, but noted that South Africa is “ready for foreign direct investment”.

South Africa’s 3700 MW gas-to-power programme aims to reduce its dependence on coal-fired power.

In July, the 685 MW open-cycle Avon Peaking Power plant came online, joining its sister 342 MW Dedisa plant as the first two independent power producer (IPP) projects in the country.

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