Gas sales agreement to power Zimbabwe’s Eureka mine
POSITIVE STRIDES The partnership is a stride towards bolstering energy access, efficiency and reliability in Zimbabwe’s mining sector
ELECTRICITY SUPPLY Invictus Energy has partnered on a gas-to-power project to supply electricity to the Eureka gold mine
Independent upstream oil and gas company Invictus Energy has partnered with mine operator Dallaglio Investments and power generation firm Himoinsa Southern Africa on a gas-to-power project in Zimbabwe to supply electricity to gold miner and explorer Delta Gold Zimbabwe’s Eureka gold mine, in the Guruve region.
Led by Himoinsa, the envisioned power generation facility is anticipated to start with an initial capacity of 12 MW, expandable to 50 MW.
The memorandum of understanding signed earlier this year outlines plans for incremental growth and additional power offtake agreements.
Feasibility studies are expected to determine the most effective power delivery method, evaluating options such as on-site generation or using the existing grid infrastructure, located 5 km away from the mine.
Following the study, Invictus Energy and Himoinsa plan to establish a binding Gas Sale and Purchase Agreement to ensure a steady supply of natural gas for power generation and electricity delivery to Dallaglio’s Eureka operation.
Under the partnership, gas extracted from the Cabora Bassa project will fuel operations at Eureka, located 50 km from the Mukuyu-2 wellsite.
Energy advocacy group African Energy Chamber (AEC) commends this initiative, recognising it as a “stride towards bolstering energy access, efficiency and reliability” in Zimbabwe’s mining sector.
As the Eureka mine currently relies on diesel-fired power as a back-up energy source, the transition towards gas-fired power is intended to provide a more dependable and environment-friendly energy supply, while also facilitating data collection crucial for optimising full-field development planning and determining resource volumes and locations.
Beyond Zimbabwe, the electricity generated from this project holds potential to serve other private offtakers through local grids or through the Southern Africa Power Pool – a regional integrated power network.
As energy demand escalates across Africa, initiatives like this demonstrate the feasibility of leveraging indigenous energy resources to meet rising electricity needs, Invictus said in an April statement, adding that it has already signed a gas supply deal with Zimbabwe’s Mbuyu Energy, with a 500 MW power project on the cards.
In addition, the confirmation of the Mukuyu gas-condensate discovery at the Cabora Bassa project has further catalysed Invictus Energy’s efforts towards early monetisation strategies and expedited production timelines.
The high-quality natural gas found at Mukuyu-2 is expected to facilitate a streamlined early production system, reducing infrastructure requirements and paving the way for future full-field developments.
“This initiative represents a step forward for Zimbabwe’s energy sector and the gold mining industry, aligning with the country’s vision for sustainable energy development. It underscores the potential of African nations to leverage indigenous resources for sustainable development, unlocking new opportunities for economic growth and energy security in Zimbabwe and the broader African region,” says AEC executive chairperson NJ Ayuk.
Zimbabwe’s efforts in gas-to-power initiatives are expected to serve as a blueprint for other Southern African nations seeking to fortify energy security and drive economic growth through sustainable energy solutions, reports Invictus.
With gold being one of the country’s biggest export commodities, securing a sustainable supply of electricity will help bolster production and broader economic growth, notes Invictus.
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