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OVERVIEW

Oil and gas Richards Bay is set to host a liquid natural gas plant.

SECTOR INSIGHT Transnet Pipelines’ new multi-purpose pipeline is the country’s energy lifeblood. • P e t r o l e u m Agenc y South Africa is awarding exploration rights in the province.

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f a private partner can be found, a liquid natural gas (LNG) plant will soon be producing 2 000MW on a site in Richards Bay. This forms part of national government's allocation of 3 126MW to natural gas in its medium-term energy policy to 2030. The National Department of Energy (DoE) decided in 2016 that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme would be allocated to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this ambition. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of liquid natural gas. A new unit within the National Department of Trade and Industry (dti) is focussed on importing LNG, particularly from Mozambique and Botswana. Local demand for LNG is expected to increase to more than 10-million tons per annum. The Richards Bay Industrial Development Zone signed an agreement in 2015 with Byromate to produce 60MW from a biomass plant and manufacturing in the solar sector is another option within the broader energy field. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy. Sinopec of China has bought a 75% share in Chevron South Africa for R12.6-billion and the deal has been approved by regulators. Assets

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include a lubricants plant in Durban, an oil refinery in Cape Town and 820 petrol stations across South Africa and Botswana. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP) which started delivering fluids in 2012. The NMPP terminals allow for greater flexibility in supply. Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines apparently reduces the number of fuel tankers on South African roads by about 60%. The liquid fuels and gas networks of Transnet Pipelines traverses KwaZulu-Natal from west to east and north to south. The petroleum network has intake stations at both Durban refineries, while the gas pipeline runs from Secunda to Durban, with diversions to the manufacturing hubs of Newcastle and Richards Bay, and along the coast between Durban and Empangeni. Transnet KWAZULU-NATAL BUSINESS 2018/19

KwaZulu-Natal Business 2018/19  

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has es...

KwaZulu-Natal Business 2018/19  

The 2018/19 edition of KwaZulu-Natal Business is the 10th issue of this highly successful publication that, since its launch in 2008, has es...

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