South Africa’s first tender for private gas-to-power projects has ended without a winner due to concerns over gas supply. The tender aimed to secure 2,000 megawatts (MW) of power but closed without a preferred bidder, according to the country’s ministry of energy and electricity.
The Independent Power Producers office had received four bids in May, totaling 2,830 MW. However, the bidders were unable to provide assurances of gas supply, a key requirement of the tender.
South Africa relies heavily on gas imports from Mozambique, where declining volumes threaten to disrupt domestic industrial users. Supplies are expected to run dry in a few years, adding to the challenges.
The country is shifting toward gas to reduce its dependence on coal-fired power stations and is developing its first liquefied natural gas import terminal with ExxonMobil and Eskom as anchor clients. There is no timeline yet for the next gas procurement window, though South Africa remains committed to its gas-to-power goals.