LNG imports a real option for South Africa – IGU president
The development of liquefied natural gas (LNG) export capacity in countries such as the US and Australia is transforming gas into
a “global energy market” and creating opportunities for countries such as South Africa to diversify its energy mix and bolster security of supply.
This is the view of International Gas Union (IGU) president David Carroll, who participated in the organisation’s executive committee meeting in Durban this week.
He said the addition of significant LNG export capacity globally had already led to more affordable gas prices, as well as the prospect of “moderate pricing until supply and demand becomes much more balanced”.
Each country would develop its own energy policy and strategy, but Carroll argued that South Africa had a genuine opportunity to tap not only greater global LNG supply, but also domestic and regional sources of supply.
His statement came ahead of the much anticipated release, by the South African government’s Independent Power Producer (IPP) Office, of a request for proposals for the procurement of 3 136 MW of gas-to-power capacity.
Assessments were being made into the possibility of creating import infrastructure in Saldanha Bay, Coega and/or Richards Bay and Energy Minister Tina Joemat-Pettersson indicated recently that a two-phased approached would be pursued.
“We are planning to pre-qualify consortia of bidders who will have the opportunity to bid for the programme,” she wrote, indicating that the initiative could yield investments of around R64-billion in the coming four to five years.