Gas project shows huge potential for West Coast
GAS energy could be a jobs and environmental game-changer for the Western Cape if a feasibility study for a Liquefied Natural Gas (LNG) development in Saldanha Bay succeeds.
The study presented to the standing committee on finance and economic opportunities represents an estimated direct infrastructure investment of R35 billion, with a projected impact on GDP of R125 billion.
“The project includes the importation of LNG at Saldanha Bay and the development of gas storage, transmission and distribution infrastructure along the West Coast corridor of the Western Cape Province,” the study said. “The utilisation of LNG will include electricity generation as well as use for industrial, transportation and domestic purposes.”
Committee chairperson Deidre Baartman said: “This is the largest energy project in the Western Cape since Ankerlig was completed in 2007, and has the potential to provide the spark for an economic explosion on the West Coast.
“The development could also result in over 13 000 jobs, including jobs and investment in downstream and secondary industries,” said Baartman.
The Department of Economic Development and Tourism’s director of energy, Ajay Trikam, said that one of the benefits of gas would be a lower carbon footprint.
“Natural gas will help achieve our goal of a low-carbon, energy-secure future. One of the socio-economic benefit from gas-based industrialisation will be that industries will be able to switch from dirtier fuels such as coal, heavy fuel oils and diesel, to natural gas, thus reducing the Western Cape’s carbon footprint,” said Trikam.
The department said it was continuing with lobbying and advocacy for LNG importation and would be working with Eskom to contribute to Eskom’s business case for conversion of Ankerlig to take up LNG.
The department has a Memorandum of Co-operation with Transnet, whose transaction adviser has completed a study investigating the possibility of a LNG importation.