The Coega Development Corporation (CDC) welcomes the comments by the Minister of Mineral Resources and Energy, Honorable Gwede Mantashe.
In particular, the CDC welcomes the comments attributed to the Minister that, “by Wednesday [16th October], I am very hopeful that the IRP would be concluded, and we will gazette it.”
In July 2019, the Department of Mineral Resources & Energy (DMR& E) identified the Coega Special Economic Zone (SEZ) as one of the location for the initial LNG (Liquefied Natural Gas) Hub for South Africa.
The Coega SEZ is home to the diesel-fuelled 342 MW Dedisa Peaking Power Plant (PPP), and is an existing market for LNG. Upon finalization of the integrated Resource Plan (IRP), the DMRE intends to proceed with a Gas to Power Programme, with the Coega SEZ hosting at least 1,000 MW of additional gas-driven power generation.
The Minister, in his speech at the Africa Oil & Power event in Cape Town on 10th October 2019, highlighted natural gas as key for South Africa’s energy mix and further explained that projects like the Coega Development [Corporation] in the Eastern Cape province would be at the core of this strategy.
The short-term outlook is to import liquefied natural gas (LNG) to trigger the Gas economy, which would stimulate the exploration and production of indigenous gas resources in the Eastern Cape.
The availability of gas would also open up opportunity for the supply of the gas to downstream and third party gas off-takers, such as the chemicals-related and metallurgical sectors whose project development is underway.
“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 Sandisiwe Ncemane, CDC’s Project Development Manager – Energy Projects.
Ms 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 the private sector.”
Latest posts by Alan Straton (see all)
- Understatement of the Year; “SOEs remain under pressure” - 20 November 2019
- 100 Free Tickets Available - 20 November 2019
- Organisation expanding expertise to the African diaspora - 20 November 2019
- Avoiding #JanuWorry - 20 November 2019
- Odwa Mtati appointed as CEO of SAIMI - 20 November 2019