Siemens considering $3.7b bid for South Africa gas-to-power project

Siemens considering $3.7b bid for South Africa gas-to-power project

Siemens AG said it is considering a bid for a US$3.7 billion mega project as South Africa’s programme to generate power from gas builds in stature.

The German engineering giant’s CEO Sabine Dall’Omo said it has had ‘significant discussions’ with potential partners about tendering for the contract to develop 3,000MW of gas-fired generation at two ports on the east coast of South Africa.

“The process is moving now,” said Dall’Omo in a phone interview with Bloomberg. “South Africa is ready for foreign direct investment.”

South Africa’s Department of Eenrgy announced a plan on 3rd October to import liquefied natural gas to generate electricity sold un a 20-year power-purchase agreement with state-owned utility Eskom.

Energy Minister Tina Joemat-Pettersson declared gas-power development a priority in August last year as the government tries to reduce the nation’s dependence on coal. The programme will create jobs and build generating capacity that consumes less water than existing coal-fired plants, according to Dall’Omo.

@RGNonline