* Gas-to-power projects to add 3,000 MW to grid
* Exxon, Shell among bidders for LNG, power supply
* South Africa prefers floating LNG facilities
By Wendell Roelf
CAPE TOWN, Oct 3 (Reuters) - South Africa will announcepreferred bidders for multi-billion dollar gas-to-power projectsby the end of March as part of efforts to diversify electricityproduction away from more environmentally damaging coal plants,a government document shows.
Tender documents in May last year asked consortia to submitplans to build South Africa's first liquefied natural gas (LNG)import terminal, gas-fired power plants, storage facilities andtransmission pipelines, according to a department of energymemorandum due to be released on Monday and seen by Reuters.
Exxon Mobil and Royal Dutch Shell are amongmore than 100 bidders for the gas projects, which South Africahopes will add more than 3,000 megawatts (MW) to its currentpower production capacity of 42,000 MW.
A separate 600 MW gas-fired power plant is also beingdeveloped in parallel by the department of energy's independentpower producers unit.
South Africa already imports gas from neighbouringMozambique and could buy LNG from major African producers suchas Nigeria and Angola, analysts said.
A drop in global energy prices has encouraged South Africato push ahead with gas-to-power projects as it looks to quicklyincrease electricity supply capacity following nationwideoutages last year.
"The current global gas and LNG market conditions areexpected to represent an opportunity for South Africa to achievean economically beneficial pricing arrangement in the oil andgas cycle," the document said.
The department of energy has a preference for floatingregasification and storage facilities due to the speed withwhich they can be built.
The most likely location for new gas-fired power plants areat Richards Bay and Coega, the document said.
South Africa has separate plans for huge nuclear powerexpansion which could cost up to 1 trillion rand ($73 billion).
($1 = 13.62 rand) (Editing by Joe Brock and Mark Potter)
