Sunbird: Gas explorer agrees to supply Eskom

SUNBIRD Energy, a natural gas explorer, agreed to supply a generation plant owned by South Africa’s power utility for as many as 15 years as the country turns to the fuel to tackle electricity shortages. Sunbird and its local partner, state-owned oil company PetroSA, had agreed on a term sheet with Eskom to sell gas from the offshore Ibhubesi field near the Namibian border to the Ankerlig power plant, the Australia-based explorer said yesterday. The company expected to deliver the first gas in 2018. The Ibhubesi joint venture would supply 30 billion cubic feet of the fuel annually, Sunbird said. South Africa produced a total of 39 billion cubic feet of gas in 2012, according to the US Energy Information Administration. The agreement would encourage further development of the gas project and boost exploration in the Orange Basin, Sunbird said. Africa’s second-largest economy is considering increased use of the fuel through imports as Eskom struggles to meet demand. – Bloomberg