WINDHOEK, April 25 (Reuters) - BW Energy ( BWEFF ) has

postponed the final investment decision (FID) on its

long-delayed Kudu gas-to-power project in Namibia to 2025, two

company sources said on Thursday.

"It is true, we have delayed FID," said one source without

elaborating. Both sources declined to be named as they were not

authorised to speak to the media.

BW Energy ( BWEFF ) did not immediately respond to a request for

comment.

BW Energy ( BWEFF ) previously told Reuters the FID was expected by

September this year with first gas anticipated 30 to 40 months

thereafter.

Seen as vital to boosting electricity security in the

southern African country, as well as the broader region, the

Kudu gas-to-power project has struggled to get off the ground

for years, mainly due to cost and technical complexity.

With proven reserves of around 1.3 trillion cubic feet of

gas the Kudu offshore field has stood idle since being

discovered by Chevron ( CVX ) in 1974, some 130 kms from the nearest

land, close to Luderitz port.

Oslo-based BW Energy ( BWEFF ) is aiming for an 800 megawatt plant,

with an initial phase of 420 MW, and roughly half the power

destined for Namibia and remainder to supply regional markets.

The second phase would be built based on "huge appetite" for

Kudu's power from South Africa, BW Energy ( BWEFF ) said in June, adding

that some firms are also looking for natural gas and LNG to

displace diesel and "which we are keen to provide as soon as we

can confirm additional gas resources."

BW Energy ( BWEFF ) intends using a repurposed semi-submersible

drilling rig as a floating production unit in a bid to reduce

costs and accelerate the development, which includes a pipeline,

power plant, transmission line and LNG facility.