Thriving gas future for Eastern Cape

04 September 2019 | Web Article Number: ME201916110

Government & Municipal
Green Industries & Renewable Energy
Power Generation
Special Economic Zones
Thriving gas future for Eastern Cape

FOLLOWING the announcement by the Minister of Energy in July 2019 about Coega being the preferred location for the Liquefied Natural Gas (LNG) to Power Plant, the Coega Development Corporation (CDC) recently hosted a stakeholder networking session.

Held in partnership with the South African Oil & Gas Alliance (SAOGA), Petro Marine and Dormac, the event aimed to positon the Eastern Cape as the hub for gas resources in South Africa, especially LNG.

“The Eastern Cape has the potential to create a thriving, inclusive, and a job-rich oil and gas sector,” said Economic Development, Environmental Affairs and Tourism MEC Mlungisi Mvoko in his keynote address.

“By catalyzing a gas industry alone, South Africa could see an additional 50 000 economy wide job-opportunities over 25 years, which in turn would stimulate a GDP growth of at least one percent from year 10,” he added.

Amongst the delegates who attended the networking session were the Director of Sustainable Energy for the Department of Economic Development, Environmental Affairs and Tourism, Alistair McMaster; Managing Director of Dormac Marine and Engineering, Chris Sparg; CDC Energy Sector Manager, Sandisiwe Ncemane; as well as SAOGA Director Niall Kramer and Chairman of the SAOGA Board, Mthozami Xiphu.

The key opportunities for gas in the Eastern Cape highlighted during the discussions included the the conversion of natural gas into a source of fuel and feedstock to unlock new industries in the industrialisation value chain.

Also highlighted was the crucial value of the integration between the Port of Ngqura and the CDC in realizing the importation of liquefied natural gas.

“Coega has a proven track record in delivering mega-projects, for example DEDISA Peaking Power Plant was built on-time, on budget, and within the required quality parameters, and thus demonstrating our eagerness to advance readiness for SA’s first LNG importation with the assistance of relevant stakeholders,” said CDC Energy Sector Manager, Sandisiwe Ncemane.

Coega has been undertaking extensive technical readiness work for up to 4500 MW of Gas to Power. The EC Government has supported this programme with a detailed plan for a provincial gas economy, including market analysis, logistics studies, third party (small-scale) gas localization for SMMEs and Black Industrialists, and natural gas research and decision support.

“We are on the cusp of realising a thriving gas future for the Eastern Cape and indeed South Africa. We can only unlock this potential through meaningful collaboration among all relevant public and private sector partners. We have to build the Eastern Cape we want,” said Mvoko.

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