Sudan negotiates $800 million power plant

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State-owned Sudan National Petroleum Corporation (Sudapet) is currently negotiating the construction of a thermal power plant with Norwegian company Monitor Power System (MPS).

Five months ago, MPS signed a memorandum of understanding with Sudapet to finance and implement a project to use the burning of natural gas in oil production areas of block 4 and 6 for power generation.

“Negotiations are still taking place with MPS, which made an integrated offer to finance and implement the project with costs of around $800 million,” states Ayman Aboul-Goukh, Sudapet director. “Still there are several requirements that they must meet, the most important of which is the funding.”

According to the agreement, gas pipelines will be constructed to transfer gas from the two areas together with a natural gas treatment plant. This gas will be used to fuel a 460 MW thermal power station to be built in El Fula, the capital of West Kordofan state.

Moreover, the gas will be used to produce 350 tons of liquified petroleum gas for cooking, in addition to the production of 3,000 barrels of condensed gas used to increase gasoline production in refineries.

The project proposal and design were developed by Sudapet with the participation of a German firm. MPS, together with large international companies, made an integrated offer which was accepted. However, MPS has changed its initial partners leading to further negotiation.

“We are still evaluating them technically and studying the financial offer,” Aboul-Goukh states.

Furthermore, Aboul-Goukh explained that Sudapet is awaiting the completion of a study currently underway in France. The study will confirm the volume of natural gas reserves and will be completed at the end of the year.

“The project implementation will not begin before the completion of this study,” Aboul-Goukh states. “We have the initial volumes of natural gas reserves, but we must make sure that the gas supply continues for more than 20-25 years.”

The current negotiations will confirm funding and upon the completion of the study, the implementation of the project will commence.