Port Elizabeth - The Coega Development Corporation (CDC) announced on Thursday that energy development from gas in South Africa is entering a "golden age", and gaining significant momentum.
“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,” said Sandisiwe Ncemane, CDC energy manager.
The CDC issued a tender notice for an environmental impact assessment (EIA) for a gas to power facility.
“We have received an overwhelming number of responses from local and international key industry players,” said Ncemane.
The proposed facility will be situated less than 4km from the 400kV Dedisa substation, which is expected to reduce costs for taxpayers and authorities.
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.
“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,” said Ncemane.
The proposed gas-to-power plant will be the second power plant in the Coega IDZ after the Dedisa Peaking Power Plant.