S.Africa’s gas industry needs infrastructure - CNBC Africa

S.Africa’s gas industry needs infrastructure

Southern Africa

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Natural resources are constantly gaining importance in Africa and due to this current lack of infrastructure, PetroSA plans to issue an international tender in August to aid Liquid Natural Gas (LNG) imports.

“We will be issuing an open tender to the market for LNG supply. The key terms of the tender would be for supply starting in 2018. Indicative volumes at this stage, Eskom’s looking at about 0.6 million tonnes per annum. So the starting size would be supply for about 1.2 million tonnes per annum,” Matthysen, the LNG project operations manager at PetroSA, told CNBC Africa on Tuesday.  

“We’ve got some pipelines that bring gas from Mozambique into the North of the country but certainly, around the Southern Cape, Western Cape, there is no gas infrastructure.”

South Africa’s national oil company PetroSA recently announced plans to build an LNG terminal for its Mossel Bay plant in the Western Cape. The company said it would make a final decision towards the end of 2014.

A feasibility study to construct an offshore liquid gas import facility off the Southern coast is estimated to cost between 375 million and 510 million US dollars. Matthysen, however, insisted that gas is crucial to the country’s energy future. 

“I think gas is key to South Africa, we don’t have a gas market in South Africa. Gas offers numerous benefits in terms of increasing efficiency in power generation, reducing our carbon footprint. Gas is a clean source of energy. Around the world gas is a key component,” he said.

The National Gas Infrastructure Development Plan was drafted for the purpose of developing infrastructure for future gas market developments and to enhance both onshore and offshore exploration in South Africa.

PetroSA is a crucial player in the development plan along with iGas, the Petroleum Agency of South Africa and Petronet. 

 

“There are a lot of challenges that we need to overcome, from a regulation, from an environmental point of view but I believe that gas offers us more benefits than it does problems,” Matthysen said. 

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