Source: Invictus signs Zimbabwe gas sales pact » Kallanish Energy News
Independent oil and gas company Invictus Energy announced Tuesday a Memorandum of Understanding (MoU) with a Zimbabwe-based manufacturer for 20 years of natural gas, Kallanish Energy learns.
The gas will come from the Cabora Bassa project, in the onshore Cabora Bassa Basin in Zimbabwe, a joint venture by Invictus (80% ownership) and natural gas utility One-Gas Resources (20%). It is considered a giant field, as it may hold 500 million barrels of oil-equivalent (Mmboe) or more.
The partners signed a non-binding MoU with Sable Chemical Industries, the sole manufacturer of agricultural-grade ammonium nitrate fertilizer in Zimbabwe.
The contract begins on the date of initial commercial gas production. The minimum daily quantity is 35 million cubic feet, for a total of 13 billion cubic feet per year, which Sable can double by contract.
“The potential gas supply of up to 70 million cubic feet per 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,” said Scott Macmillan, Invictus’ managing mirector, in a release.
“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,” he added.
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