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Coega SEZ positions itself to become SA’s Liquefied Natural Gas Hub

Aug 28, 2019
Coega SEZ positions itself to become SA’s Liquefied Natural Gas Hub

Port Elizabeth - Following the announcement by the Minister of Energy in July 2019 about  Coega being  the preferred location for the Liquefied Natural Gas (LNG) to Power Plant, on Tuesday the Coega Development Corporation (CDC) hosted a stakeholder networking session in partnership with South African Oil & Gas Alliance (SAOGA), Petro Marine and Dormac to  position the Eastern Cape as the hub for  gas resources in South Africa, especially LNG.

Eastern Cape MEC for DEDEAT, Mlungisi Mvoko, in his keynote address highlighted the importance of LNG for creating socio-economic growth in terms of jobs and SMME development, to name but a few.

“The Eastern Cape has the potential to create a thriving, inclusive, and a job-rich oil and gas sector. By catalyzing a gas industry alone, South Africa could see an additional 50 000 economy wide job-opportunities over 25 years, which in turn would stimulate a GDP growth of at least 1 percent from year 10,” he emphasized.

Amongst the delegates who attended the networking session was Alistair McMaster, Director of Sustainable Energy for the Department of Economic Development, Environmental Affairs and Tourism; the Managing Director of Dormac Marine and Engineering, Chris Sparg; CDC Energy Sector Manager, Sandisiwe Ncemane; as well as representatives from SAOGA: Niall Kramer, Director of SAOGA and the chairman of the SAOGA Board, Mthozami Xiphu.

The key opportunities for gas in the Eastern Cape highlighted during the discussions include the opportunity for the industry to convert  natural gas as a source of fuel and feedstock to ultimately unlock new industries in the industrialization value chain.

The crucial value of the integration between the Port of Ngqura and the CDC in realizing the importation of Liquefied Natural Gas is amongst the key driving stimulus in ensuring that the first step in unlocking a gas driven economy has been met.

Coega together with the Port Ngqura embody an optimal geographic location to support gas markets both to the East and West coasts of South Africa. Furthermore, Coega offers a strong integrated logistics corridor for the delivery of gas to the hinterland.

“Coega has a proven track record in delivering mega-projects, for example DEDISA Peaking Power Plant was built on-time, on budget, and within the required quality parameters, and thus demonstrating our eagerness to advance readiness for SA’s first LNG importation with the assistance of relevant stakeholders,” said CDC Energy Sector Manager, Sandisiwe Ncemane.

Coega has been undertaking extensive technical readiness work for up to 4500 MW of Gas to Power.

The Eastern Cape government has supported this programme with a detailed plan for a provincial gas economy, including market analysis, logistics studies, third party (small-scale) gas localization for SMMEs and Black Industrialists, and natural gas research and decision support.

“We are at the cusp of realising a thriving gas future for the Eastern Cape and indeed South Africa. We can only unlock this potential through meaningful collaboration among all relevant public and private sector partners. We have to build the Eastern Cape we want,” concluded Mvoko.

Image: SAOGA Delegates at the Coega SEZ  Stakeholder Networking Session

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