On Thursday, the state-owned Coega Development Corporation (CDC) announced that energy advancements from South African gas is approaching a “golden age” and attracting increased attention.
CDC energy manager, Sandisiwe Ncemane, said: “Energy development from gas is especially important because it will assist the country to meet base-load energy needs between 2020 and 2030. The upside for gas to power projects is its character for relatively shorter gestation period.”
Gas to power
The CDC has issued a tender for an environmental impact assessment for a gas to power plant, which has received significant interest.
Ncemane said: “We have received an overwhelming number of responses from local and international key industry players.”
Should the project be approved, it will be located less than 4km from the 400kV Dedisa substation, which is expected to reduce costs for taxpayers and authorities, CDC said in a statement.
According to Sasol’s chair David Constable: “special economic zones such as Coega are ideally suited, because of their location to gas producing global regions, and because of its proximity to South African shale gas mining fields, which are located in the Karoo.
Ncemane added: “The CDC’s case is strengthened by existing infrastructure as it reduces costs for business through its proximity to the planned processing facility that will convert LNG into gas and a 2km pipeline to the power plant that will generate electricity from natural gas.”
This will be the second gas power plant in the Coega IDZ after the 342MW Dedisa Peaking Power Plant.