CONFUSION in the government over which ministry is responsible for the Lupane gas project continues to stall the development of a resource which could help ease the country’s energy woes, an industrialist has said.
Zimbabwe has vast unexploited gas reserves in the Hwange-Lupane basis estimated at over 23 billion cubic feet.
Industrial Development Corporation (IDC) managing director Mike Ndudzo on Friday told The Source the government must put its house in order to attract investors for the project.
Three ministries — mining, energy and industry are in disagreement over who should take charge of the project.
“We formed a company over 10 years ago, as a special purpose vehicle (SPV) to create critical mass technically and financially to drive this project, but what has happened? There have been squabbles before GNU (government of national unity), during GNU and up to now,” Ndudzo said.
The firm which was formed to spearhead the project was called Lupane Gas Development Company.
Power utility, Zesa Holdings and Chemplex Corporation are among the firms that were involved in the company.
Ndudzo said the IDC had been told to “forget” about the project in the inclusive government era between 2009 and 2013.
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“So now I do not know whether to revive the SPV as before the GNU or to abandon it altogether,” he said.
“Investors come to me saying we know you have gas, but I hardly know what to tell them.”
IDC is a holding company wholly owned by the government. Another company Zambezi Gas last year said it had delayed plans to extract methane gas at its Hwange claims in Matabeleland North after failing to raise funding for the project. The firm was granted special gas and coal concessions in 2003 and 2007 respectively, but lack of technical and financial resources has delayed the investments over the years.
Zambezi Gas says it needs at least $60 million to kick start the project.
However, Shangani Energy Exploration (SEE) last month said it would embark on a $780 million gas project and build a 400 megawatt power station in Gwayi.
SEE is jointly owned by ferrochrome producer Zimasco and its parent company, China’s Sinosteel Corporation with an 84,81% stake, while the remainder is held by Paul Tromp.
—The Source
