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dam-l Kudu gas moves forward/LS
>From The Namibian:
September 8, 1999 - Web posted at 07:40 a.m. GMT
Shell SA & councils back Kudu
CHRISTOF MALETSKY
SHELL South Africa and seven Cape Metropolitan Local Authorities have
signed a letter of intent
indicating they will pursue the opportunity of utilising the Kudu gas
reserves to supply the Western
Cape.
The letter of intent is being seen as a major step towards the Kudu
scheme "capturing one of the project's
anchor markets", a statement from Shell SA says.
Shell SA adds that the Letter of Intent provides the basis for an
independent evaluation of the feasibility
of introducing gas into the Western Cape by pipeline from the N$2,2
billion offshore Kudu gas project.
The focus of the feasibility study will be to investigate the
possibility of creating a power station using
Kudu gas in the Cape metropolitan area at either a greenfield site or
by utilising the site of the existing
coal-fired power station at Athlone.
Shell's letter of intent comes hot on the heels of the inauguration
of the first phase of a 400kV powerline
between Windhoek and Pretoria which saw power utilities NamPower and
Eskom strenghtened their ties.
At last month's inauguration, President Sam Nujoma said he had been
told that NamPower and Eskom
were making good progress in discussions with Shell on the
establishment of the Kudu gas plant.
Nujoma said the Kudu project was vast enough to generate additional
power for South Africa, especially
the Western Cape. Earlier Eskom had said it was interested in the
Kudu project but was unlikely to join
the venture in the short term.
Recently additional gas reserves totalling more than 20 trillion
cubic feet were discovered. Initial
estimates put Namibia's gas reserves at a maximum of five trillion
cubic feet. The proposed gas plant is
expected to bring N$18 billion in investment to Namibia and the region.
Marketing gas to the Western Cape forms part of Shell Exploration's
second phase of the Kudu project,
which also aims to supply gas for steel production at Saldanha Bay.
Estimated investment for the second phase of the project includes N$3
billion for offshore infrastructure,
N$2,4 billion for an overland pipeline to the Western Cape and N$3,6
billion for the Cape Town power
station.
The aim of the Kudu plant is to make Namibia, which has experienced a
six to 11 per cent rise in power
demand in recent years, self-sufficient in power while also allowing
for export.
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(c) 1999 The Namibian
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Lori Pottinger, Director, Southern Africa Program,
and Editor, World Rivers Review
International Rivers Network
1847 Berkeley Way, Berkeley, California 94703, USA
Tel. (510) 848 1155 Fax (510) 848 1008
http://www.irn.org
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