Gas Field to supply Saldanha Bay with 750 Megawatts Power Plant.

African International Energy Plc (7AE), a
Johannesburg-based investor in energy projects on the continent,
said developing the Ibubhesi gas field off South Africa’s west
coast will cost $2.5 billion.

The field, in which state-owned PetroSA holds a 24 percent
stake, is likely to begin production by the end of 2016,
Aldworth Mbalati, chief executive officer, told reporters in
Johannesburg today. The gas will feed a power plant with a
capacity of as much as 750 megawatts in Saldanha Bay, he said.

South Africa is expanding its 41,000 megawatts of
electricity capacity to overcome a shortage that temporarily
halted mining in 2008. It plans to get 5 percent of its
electricity from gas by 2030.

African International Energy is paying $270 million for a
74 percent stake in the project. The deal is subject to certain
government and competition authority approvals and is expected
to close in three to six months, Mbalati said.

African International is planning a listing in Johannesburg
before the end of the year and will be raising debt and equity
“along the line” to fund the project, he said.

To contact the reporter on this story:
Jana Marais in Johannesburg at
jmarais@bloomberg.net

To contact the editor responsible for this story:
John Viljoen at
jviljoen@bloomberg.net

Source http://energized.co.za/?p=1837

News brought to you by West Coast Office National 022 713 1111. www.pencil.co.za
Order your Laser Printer today and receive FREE installation on the West Coast.