Petroleum commissioner Maggy Shino has shared that a final investment decision is expected on the Kudu Gas project by next year.
If favourable, the first power from the extensive gas resource could be produced by 2027.
Shino was speaking at the official opening of the sixth edition of the Namibia International Energy Conference 2024 (NIEC) that concluded yesterday in the capital.
The Kudu Gas project is now seen in a different light after recent offshore oil discoveries.
The Kudu gas field in the northern Orange sub-basin, approximately 130km offshore, was discovered in 1974, and it is delineated by seven subsequent wells.
In 2017, BW Energy entered into a farm-in agreement for a 56% operated interest, with the National Petroleum Corporation of Namibia (Namcor) holding a 44% joint venture interest.
In 2021, BW Energy signed a farm-up agreement with Namcor, increasing the corporation’s interest to 95% in the licence and closed the transaction in 2021.
Touching on the plans and strategies, the commissioner stated that Namibia intends to build a floating platform some 170 kilometres offshore within the block owned by the joint venture.
“With this floating platform, we are then going to build a pipeline that is going to move the gas from offshore to Lüderitz to a point called Elizabeth Bay, where we are going to put up a power batch to convert the natural gas which we produce into electricity,” Shino explained.
She added that the Namibian government sees the Kudu Gas project as an integrated one, adding local government remains pragmatic.
Shino earlier stated the project is expected to generate up to 420 megawatts for the Namibian market’s consumption and it could supply regional markets with the power demand.
Currently, Namibia still imports, on average, more than 60% of its domestic electricity needs.
Furthermore, last year, BW Kudu, a subsidiary of BW Energy, which is an oil and gas company involved in the acquisition, development and production of proven oil and natural gas fields, stated it would fund the entire project, which means no capital inflow would be required from the Namibian government.
BW Energy is an affiliate of the BW Group, a global maritime energy transportation and floating gas infrastructure company with an 80-year history.