DNG Energy to fight power contracts

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DNG was an unsuccessful bidder in the round, having backed three gas projects itself. Photo: File
DNG was an unsuccessful bidder in the round, having backed three gas projects itself. Photo: File

BUSINESS


DNG Energy, a South African company that’s aiming to develop liquefied natural gas facilities, said it has taken legal action to have the government’s award of emergency power generation contracts halted.

Last month, government awarded the right to develop 1 845 megawatts of generation capacity to eight companies at a cost of R45 billion by August next year to alleviate intermittent power shortages.

The award attracted criticism mainly because Turkey’s Karpowership won the bulk of the contracts and the right to produce electricity from power ships moored off the South African coast for 20 years.

READ: Power ships price of electricity can rise (or fall) sharply

DNG is seeking the “interdicting, review and setting aside of the decision of March 18”, the company said in response to queries on Thursday, declining to comment further.

People who go to court are answered in court.
Energy Minister Gwede Mantashe

DNG was an unsuccessful bidder in the round, having backed three gas projects itself.

The award of the contracts was designed as a stop-gap measure as the country plans to launch a number of tenders for the right to develop renewable, gas, coal and battery power projects to solve its electricity woes.

Eskom is unable to meet national demand.

READ: Gas can save Mpumalanga as coal declines

News24 earlier reported that the company made allegations of corruption in the award of the contracts and said they involved a businessperson linked to Mineral Resources and Energy Minister Gwede Mantashe.

“People who go to court are answered in court,” Mantashe said when contacted by Bloomberg.

“Editors are not judges.” Bloomberg


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