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South Africa : ESKOM to generate energy from gas on OCGT.

In order to cut costs, South Africa's state-owned power producer Eskom is planning to generate energy from gas on its open-cycle gas turbines (OCGT) rather than diesel.

Acting CEO Collin Eskom was looking to convert its OCGT plants to operate on gas as well as purchase gas-fired energy from Mozambique.

Matjila said this while presenting the firm's annual results for the 12 months ending March 31, 2014 in Johannesburg earlier in the week.

He said it had already extended a agreement to purchase power from Aggreko's temporary power plant in Mozambique and was pursuing other longer-term power purchase deals.

The firm's liquid fuels consumption increased to 1 148.5 million litres over the past year, from 609.7 million litres the year ago.

This led the power utility to spend nearly $1 billion on diesel fuel over the past year to allow it to run its two OCGTs in the Western Cape.

The spending exceeded the R5 billion spent during previous year.

The amount was also $756 million above the $233 million the firm had budgeted for.

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Publication:Mena Report
Geographic Code:6SOUT
Date:Jul 14, 2014
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