Coega ready to step on the gas
● Corporation eyes new energy-based projects
A near-perfect storm is brewing with the natural gas discovery just off Mossel Bay and the long-awaited update to the Integrated Resource Plan (IRP) expected to be released to SA’s cabinet in September.
The gas condensate discovery at the Brulpadda block and the IRP for electricity have caused a number of countries to switch their focus to SA.
This is according to South African Oil and Gas Alliance director Niall Kramer.
“As the legislation comes into effect it is an almost perfect storm,” he said.
“The readiness in my view is very important, but the industry will come whether we are ready or not.
“It will bring Norwegians, Russians and others, and we need to be part of that establishment,” he said.
The IRP will include a new diversified electricity generation portfolio such as nuclear, hydropower and renewables, while giving details on just how much liquefied natural gas will be imported through Coega.
It will be used as the roadmap for the energy generation new-build programme, while it is strongly believed that natural gas will also cater for the increased demand for access to affordable energy sources.
Kramer spoke at a breakfast networking session on Tuesday, which he facilitated.
The session held various discussions on how to position Coega for future oil and gas projects.
“The IRP will go before cabinet in September,” he said.
“This is an important policy step as it would define the amount of gas and coal that go into the electricity mix.
“Once that certainty has been provided, things will start to kick off.”
With the find in Mossel Bay, Kramer said other explorers would have taken notice.
The session came about after energy minister Gwede Mantashe announced in his budget vote speech in parliament earlier in 2019 that the Coega special economic zone (SEZ) was the ideal hub for the importation of liquefied natural gas.
While Coega welcomed Mantashe’s news, the corporation had started many years ago to explore economical options to bring natural gas into the SA market.
The work also was to prepare the region for gas readiness.
Coega energy sector manager Sandisiwe Ncemane said the SEZ was an ideal location to unlock SA’s gas economy.
“We are gas ready – we have looked at all the energy plans broadly,” she said.
A big part of the plan includes the R3.5bn Dedisa power peaking plant which generates 335 MW.
The diesel fuel-fired plant is designed in such a way that it can be converted to allow for combined-cycle, gas-fired technology.
“But at the heart of it we must make sure the impact is not just for Coega or the government, but that it is something for the people of the province,” she said.
Eastern Cape treasury head of ministry Lulama Taleni said the provincial government was eagerly awaiting the release of the IRP.
“The Eastern Cape is ready to be the gas-to-power hub of South Africa.
“It will stimulate economic growth,” Taleni said.