Shell Looking At Coega For LNG Import Terminal

NOVEMBER 6, 2014

Coega is one of three possible sites being studied by Shell for a Liquefied Natural Gas (LNG) import terminal, along with Saldanha and Richards Bay.

Engineering News reports Shell LNG Business Development Manager John Shoobridge as suggesting that the LNG terminal could be developed as a publicprivate partnership.

He indicated that the company was “already studying possible sites,” including Coega.

Shoobridge states that South Africa would be able to recoup the capital costs associated with an LNG import terminal within three to four years by using gas to replace diesel currently being used in Eskom’s open cycle gas turbines.

He said the savings that would accompany switching the plants to gas “should be more than sufficient to offset fears over the infrastructure costs associated with an LNG terminal”.

He acknowledged that the costs would be “significant”.

The final cost, he spelled out, would be determined by the site and the type of terminal that was selected.

Shell’s decision to study various locations for the terminal follows an announcement by PetroSA that oceans conditions off Mossel Bay where it planned to build a terminal were not suitable.

PetroSA, according to Engineering News had estimated the cost of the terminals as being between R3.8 and R5.1 billion. -MetroMinuets