CAPE TOWN: Siemens AG said it’s weighing a bid for a $3.7 billion project as South Africa’s program to generate power from gas gains momentum. “The process is moving now,” Siemens South Africa Chief Executive Officer Sabine Dall’Omo said in a phone interview from Johannesburg. “South Africa is ready for foreign direct investment.”
Dall’Omo said Siemens has had “significant discussions” with potential partners about bidding for the contract to develop 3,000 megawatts of gas-fired generation at two ports on the east coast of South Africa. The plan announced by the Department of Energy on Oct. 3 involves importing liquefied natural gas to generate electricity sold under a 20-year power-purchase agreement with state-owned utility Eskom Holdings SOC Ltd. Energy Minister Tina Joemat-Pettersson declared gas-power development a priority in August last year as the government tries to reduce the nation’s dependence on coal. The program will create jobs and build generating capacity that consumes less water than existing coal-fired plants, according to Dall’Omo.
