28 July 2008 – Paulinus Shilamba, managing director of NamPower has told reporters in Namibia that mining companies have approached the utility with offers to buy electricity from the Kudu Gas project in US dollars.
The project has stalled because Tullow and Eskom, partners in the project, want to buy gas in South African rands, citing high fuel prices and increased risk due to US dollar instability.
"The big mining companies approached us saying they are ready to buy the gas in US dollars. We are talking to them at the moment," Shilamba said. He said the assurance that the companies would buy in US currency would reduce the risk of developing the project.
"The risk associated with price fluctuations will come down considerably," he said.
He said the increase in electricity tariffs in southern Africa has also made the development of the project more viable.
The Kudu project involves the development of an 800MW gas power station at Oranjemund.