15 October 2009 – Gigajoule Africa (Pty) Ltd says it is regrettable that NERSA has turned downed its license application to bring natural gas to the Cape West Coast and the Western Cape. The energy company says it is studying the reasons for the national energy regulator’s decision, and will only be able to respond to it in more detail later.
Gigajoule’s plans were to source either compressed natural gas (CNG) from the proven Kudu Gas field off the Namibian coast or liquefied natural gas (LNG) from other sources internationally and bring it on shore to the Cape West Coast and from there via a pipeline to mainly industrial customers along the coast and in the Western Cape, including the Cape Peninsula.
Mr Johan de Vos MD of Gigajoule Africa (Pty) Ltd says it is very disappointing but it doesn’t mean that the company has now given up on the project. “We are reconsidering our options, depending on the reasons given by Nersa,” he said.
De Vos says the project would have brought immense benefits to the Cape West Coast and the Western Cape and act as a catalyst for industrial development.
Not only does the introduction of natural gas to the Cape region mean a diversification of energy sources at a time that electricity are becoming extremely expensive, but it is also a clean-burning source of energy. As environmental standards become more stringent and the curbing of carbon emissions become a priority, natural gas has distinct advantages over other fossil fuels currently in use like coal, diesel, heavy fuel oil, and petrol. Natural gas is a clean-burning fuel and produces no sulphur and far less carbon dioxide and other particulates than coal, liquid petroleum gas (LPG), diesel and oil.