Ricochet News

Challenger eyes opportunities in Coega IDZ

NOVEMBER 3, 2014
Challenger eyes opportunities in Coega IDZ

Australian unconventional gas explorer, Challenger Energy whose subsidiary, Bundu Gas and Oil Exploration has exploration rights for shale gas in the Cranemere area, is looking at the Coega IDZ as “a natural market for shale gas”.

A research note on the company by Edison points out that other end-user markets (commercial, industrial and residential markets) could be reached “if pipelines were built to the coast just 200 kilometres away”.

It states that the Coega IDZ is aiming to attract investment in the automotive, chemical, refining and metals sectors “but is materially constrained by a lack of power and would be a natural market for shale gas”.

Edison adds that Challenges “estimates that new gas pipelines could start up in 2022-23”.

Spelling out the timeframes in a presentation to the National Council of Province’s Land and Mineral Resources Committee, the Department of Mineral Resources said it expected technical regulations for the development of shale gas “to mitigate inherent risks” would be finalised by the end of this year.

The processing of applications that were now being held in abeyance pending the finalisation of the technical regulations would get underway in February next year.

The department said it expected licenses for exploration to be is-sued in July/August next year, adding that it would take three to seven years to confirm the extent of the gas that could be recovered economically. - metrominutes