South Africa has closed its first tender for 2,000 megawatts (MW) of gas-fired electricity generation without selecting a winner, after bidders failed to secure guaranteed fuel supply commitments, the Ministry of Energy and Electricity announced on Wednesday, 28 October.

According to Reuters, the tender — launched for independent power producers — attracted four bids totalling 2,830 MW in May, following several delays. However, none of the bidders was able to present gas supply guarantees as required under the tender specifications, according to Energy and Electricity Minister Kgosientsho Ramokgopa.

The outcome underscores the challenges South Africa faces in securing natural gas supplies as it seeks to diversify its electricity generation mix and reduce its dependence on coal-fired power plants.

South Africa imports the majority of its natural gas from Mozambique. However, declining available volumes threaten to affect South African industrial consumers, with current supply sources potentially running dry within the coming years.

Despite these difficulties, Africa’s largest economy is pressing ahead with plans to expand gas-fired power generation. As part of this strategy, it is developing its first liquefied natural gas (LNG) import terminal in partnership with ExxonMobil and Eskom.

The Ministry of Energy and Electricity did not indicate when a new round of applications for gas supply destined for power generation would be opened, but reaffirmed the country’s commitment to its gas-to-power expansion objectives.