Mike de Pontes, the chief operating officer of iGas, said that the plant would be constructed in the Coega industrial area in the Eastern Cape Province of the country.
The construction of the plant was delayed due to the lack of power purchase agreement with Eskom, a South African utility.
“The cost would be of the order of $900 million…that’s why you need a signed power purchase agreement to have an offtaker of electricity,” de Pontes added.
He noted that the capital cost for a gas-fired power plant would be less than that of coal-fired plants, which presently supplies around 90% of the South African power requirements.
