Standard Bank has unveiled a proposal to convert Elizabeth Bay into an Energy Park.
The move is seen as crucial to stimulate infrastructure development and tap into Namibia’s resource potential.
Elizabeth Bay is a mining town on Namibia’s southern coast located 25km south of Lüderitz.
Paul Eardley Taylor, Head of Oil and Gas for Southern Africa at Standard Bank said the proposed transformation includes the establishment of key infrastructure components such as a new port, an offshore gas processing hub, and interconnected pipelines.
“The primary objective of the Elizabeth Bay Energy Park (EBEP) is to harness the region’s abundant wind and solar resources. This will enable efficient production, storage, and exportation of energy products such as LNG and green hydrogen,” Taylor told a Standard Bank Namibia Oil and Connect session.
He said the proposed EBEP initiative is designed to accommodate a variety of projects and these include the development of the Kudu gas field, liquefied natural gas (LNG) and domestic gas (Domgas) initiatives, green hydrogen production facilities, and offshore oil and gas installations.
Discussing the specifics of the project, Taylor outlined several key elements, including the development of the Kudu gas field, among others.
“The plan includes the development of the Kudu gas field, with an initial capacity set at 420MW, scalable to 840MW and beyond,” he said.
Furthermore, the establishment of an Offshore Gas Processing Hub (OGPH) will be developed near the Kudu field to process gas, as proposed by BW Offshore in its Field Development Plan and ESIA.
He added that essential pipelines, such as a fit-for-purpose 12” pipeline for near-shore Kudu gas and a larger capacity subsea pipeline, are integral to the project’s success.
The ownership of infrastructure will involve collaboration between private entities like BW Offshore and the government of Namibia, potentially through a sovereign bond.
The sequencing of offshore gas activities includes reaching the Final Investment Decision (FID) for the Kudu field, completion of subsea pipelines, and the development of onshore LNG facilities.
The plan also encompasses future activities like the processing of associated gas from deep offshore fields and the development of upstream oil projects.
Recent offshore discoveries in Namibia, such as the Graff, Venus, and Jonker fields, are estimated to hold 11 billion recoverable barrels of oil equivalent (boe).
A Floating Production, Storage, and Offloading (FPSO) vessel is planned for each field, with national oil production peaking at 870 thousand barrels per day (KBPD) in 2033.
Woodmac predicts a significant fiscal impact for Namibia, with government revenues potentially reaching N$166 billion (US$9bn) annually by the mid-2030s.
“High gas-oil ratios pose challenges, but a phased multi-FPSO approach for oil development is planned. This adds complexity to gas monetisation via LNG, while Namibia’s renewable energy potential attracts integrated energy companies, enabling them to combine renewable energy with oil and gas projects for diversification,” said Taylor.
This proposal comes as the government has previously suggested that the country’s oil and gas operations be stationed at Lüderitz.
