(Ecofin Agency) - South Africa is expected to announce the selected bidders for multi-billion dollar gas-to-power projects by the end of March 2017, a government document has revealed.

According to a department of energy memorandum, syndicates were asked in May 2015 to submit plans for the construction of South Africa's first liquefied natural gas (LNG) import terminal, gas-fired power plants, storage facilities and transmission pipelines.

Exxon Mobil and Royal Dutch Shell are amongst over 100 bidders for the gas projects, which the country expects to add over 3,000 megawatts (MW) to its current power production capacity.

South Africa imports gas from Mozambique and could purchase LNG from key African producers like Nigeria and Angola.The decline in energy prices has inspired South Africa to forge ahead with gas-to-power projects as it seek to fast-track the increase in electricity supply capacity, Reuters reports.

“The current global gas and LNG market conditions are expected to represent an opportunity for South Africa to achieve an economically beneficial pricing arrangement in the oil and gas cycle,” the government document said.

Anita Fatunji