Operator of the Kudu Conventional Gas Field in Namibia, BW Offshore has said that the company is on track to have first gas-to-power from Kudu in 2027.
Dr. Klaus Endressen, General Manager for engineering company highlighted that while gas demand will follow supply, BW Offshore has been having companies approaching them saying that they would like to establish beneficiation initiatives if Namibia has the energy.
Dr. Endressen revealed this at the recently concluded Africa Energy Week (AEW) 2023 where Namibia held a country-focus session with key policymakers and companies providing insights into the country’s exploration and production opportunities.
Also speaking about the project in a Namibia Investment publication released at the same event, Manfriedt Muundjua, Deputy General Manager for BW Kudu said that upon joining the license, their initial focus was on achieving larger gas production to supply an 800 MW power plant.
“However, it became evident that the gas project required substantial volume to lower costs through economies of scale, yet the 800 MW capacity was excessive for Namibia’s requirements. The challenge stemmed from NamPower being the sole entity responsible for offtake. In response, we scaled down the project to align with Namibia’s needs.
“Our current approach is still 800 MW and phased. An initial phase would be targeting 420 MW production, followed by a second phase informed by reservoir performance data. In this revised plan, Namibia could utilize 200 MW of the initial phase, effectively replacing all imports. The remaining surplus would be sold to South Africa and local and regional private customers, including off-grid mines,” he said.
He added that currently, Namibia relies on imports for approximately 60-70% of its power requirements, sourced from South Africa, Zambia and Zimbabwe. These nations are grappling with power shortages, leading to the adoption of varying levels of load shedding. Namibia’s dependence on neighboring countries exacerbates this challenge.
“The implementation of the Kudu project is set to transform this scenario. Namibia will stand out as the sole regional nation possessing dependable, high-quality base load power, significantly enhancing its energy security. Furthermore, the surplus power generated by Kudu will be integrated into the regional grid, contributing to the reduction of power deficits across the area.
“Gas is generally recognized as a more environmentally friendly fossil fuel option. While Namibians might not witness the pollution caused by the power we consume, this is because the pollution is generated at the source in South Africa and then transmitted as electricity over power lines,” added Muundjua.
A recent study we conducted, using 2019 data, revealed that Namibia’s effective pollution amounts to approximately 2.7 million tons of CO2 equivalent annually. The implementation of the Phase 1 project, producing 420 MW, will decrease this pollution by 1.5 million tons.
Adding her voice to the project, Namibia’s Petroleum Commissioner Maggy Shino highlighted that Kudu remains our national strategic project.
To harness the Kudu field reserves, we plan to build a floating production platform approximately 170 km offshore in the block by BW Energy (operator of the Kudu field). From this platform, we will construct a pipeline that will transport gas from the offshore field to Elizabeth Bay located near the town of Lüderitz on the southern coast of Namibia, where a gas to power barge will convert the natural gas into electricity,” said Shino.
She noted that Namibia is well connected to the Southern African Development Community (SADC) region when it comes to power transmission and distribution.
“For Phase 1 of Kudu field development, we will generate up to 420 MW of electricity for domestic market consumption as well as regional via the SADC network. Phase 2 will commence thereafter to generate the full 820 MW. We are now looking at the Kudu development project with a new vision because of the discovery of additional gas reserves.
“Natural gas is a clean energy source. With the production of electricity from gas, we will be able to provide an energy transition solution and lower our carbon emissions as a country and as a continent,” emphasised Shino.
She went on to say: “We plan to utilize every energy resource that we have for the benefit of Namibians. When we are designing our energy development plan, we are building it with long-term ambitions. The Kudu field is the only solution that can provide us with baseload power, which will enable us to industrialize. Namibia is not just looking to turn on the lights – we are looking to become an industrial nation. For this, we need baseload power.”