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Coega welcomes Mantashe’s Budget vote speech on Liquefied Natural Gas

Jul 15, 2019
Coega welcomes Mantashe’s Budget vote speech on Liquefied Natural Gas

Port ElizabethThe Coega Development Corporation (CDC) announced it has welcomed the budget vote speech delivered by the Minister of Mineral Resources and Energy, Gwede Mantashe.

In particular, the CDC welcomed the Minister’s outlook on “exploring more economical options to bring natural gas into the South African market.”

In 2008, the Department of Energy identified the Coega Special Economic Zone (SEZ) as one of the preferred locations for the gas to power project - valued in excess of R25-billion.

In his Budget speech, Minister Mantashe further acknowledged Coega as an ideal hub for the “importation of Liquefied Natural Gas (LNG)”. 

“The CDC`s extensive work over the years to prepare the region for gas readiness is a step towards achieving the government`s objectives in growing the South African Energy sector,” said Dr. Ayanda Vilakazi, CDC’s Head of Marketing and Communications.

Dr. Vilakazi further said CDC’s efforts to create global appeal through investment promotion activities is complimentary to the National government’s attempt in exploring sustainable economic measures to bring natural gas into SA, in order to cater to the increased demand for access to affordable energy sources.

CDC Energy Sector Manager, Sandisiwe Ncemane noted the Coega SEZ is an ideal location to unlock South Africa’s natural gas economy.”

“To advance this vision, the CDC continues to work hand in hand with the Eastern Cape Province, other state organs and as well as the private sector,” she continued.

As a result, the CDC is also home to other successful energy projects worth over R4 billion.

These projects include the Dedisa Power Peaking plant (investment value: R3.5 billion) DCD Wind Towers (investment value: R310 million) and a R1 million 48KW solar array powering the Coega Development Corporation’s business center.

Honourable MEC Mlungisi Mvoko, reiterates the value and outcome achieved through collaborating with the CDC in unlocking economic activities within the Energy Sector in the EC region, in his 2019/20 Economic Development, Environmental Affairs & Tourism policy address (held on the 4th of July 2019).  “Coega has a proven track-record in megaprojects,” he proclaimed.

Optimistic about future prospects for renewable energy in the province, “we look forward to the release of the national Integrated Resource Plan later this year, which will set out the roadmap for the energy generation new-build programme”, he continued. 

“In addition to gas, we will continue to establish our potential in the fuel sector, by pursuing the development of an oil refinery at the Coega SEZ, as well as biofuels production and processing across the province,” Mvoko concluded.

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