SUCCESSFUL GAS TO POWER PLANT DEVELOPMENT CTRG, MOZAMBIQUE Africa Utility Week Cape Town Kribs Govender Vice President Business Development Power & Gas 13 May 2015
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Agenda 1. Natural Gas to Electricity: Value Proposition 2. Venture Partners 3. Site Location 4. CTRG Power Plant Overview 5. Site Layout 6. Central Térmica de Ressano Garcia (CTRG) Roadmap 7. Commercial Framework 8. Adding Value to the Mozambique Economy 9. Success Factors 10. Lessons Learnt 3
Natural gas to electricity: value proposition Technology Well proven High combined cycle efficiency (~60%) Modular (easily scalable) Experienced equipment vendors Constructability Short construction periods (18-24 months) Standardised package Operation Dispatchable power quick ramp-up rates Load following Lower CO 2 Less than half the CO 2 emissions compared to coal fired generation 4
Venture partners EDM has as its mission the operation of services of production, transportation, distribution and marketing of electricity of good quality, in the interest of the public, environment and to the benefit of consumers in Mozambique and the region. Sasol is an international integrated energy and chemicals company that leverages the talent and expertise of our more than 32 400 people working in 37 countries. We develop and commercialise technologies, and build and operate world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and lowcarbon electricity. 5
Site location 6
CTRG power plant overview 11 PetaJoule (PJ) of natural gas Plant Capacity 175 MW Partnership between Electricidade de Moçambique (EDM) and Sasol All electricity produced contracted to EDM Operational since February 2015 18 gas engine-generator sets 7
Site layout Stacks Engine halls Connection to Grid Storage tanks (fire & process water) 8
Start of a successful project Key contracts signed in December 2012 and January 2013 Concession Contract with Mozambican Government Shareholders Agreement with EDM Site construction activities commenced in January 2013 Sasol provided bridge funding 9
CTRG roadmap August 2012 November 2012 December 2012 January 2013 ESIA approved Soil turning & announcement Final Investment Decision Construction Programme Commences Breaking new ground October 2013 December 2014 February 2015 Engines arrival Installation & Commissioning Start of Operations 10
Commercial framework Project Funding Sponsors (Equity, Shareholders Agreements, Company incorporation) Concession agreement Capital structure and project concession Gas Sales Agreement Gas Transport Agreement Gas engine power plant CTRG Power Purchase Agreement Key Supply and Offtake arrangements Operations & Maintenance Agreement EPC Contract EIA, Permits, Licensing Other project contracts and security Connection, Use of system agreements General Agreements and support Consultants and Advisors 11
Adding value to the Mozambican economy Improve access to electricity for Mozambicans with the new 175 MW capacity In excess of 500 temporary job opportunities created during the construction phase 50 permanent employment opportunities created in operational phase Local businesses supporting the operations 12
Success factors Public-Private Partnership Contracting Approach Local/Expat mix Local community engaged Intensive training programme 13
Lessons learnt Subcontractor management Site workforce expectations Early supervisory mobilisation Engagement process with government authorities 14
THANK YOU Kribs Govender Vice President Business Development: Power & Gas 15