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Oil, gas and petrochemicals National policies are focussing on gas.

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he Liquefied Natural Gas Independent Power Producer Procurement Programme (LNG IPPPP) is part of the programme of the Department of Energy which encourages private investment in renewable energy, namely the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The total allocated to gas-to-power in the national power plan is 3 726MW, of which 3 000MW is for LNG. In 2016, the Department of Trade and Industry (dti) established a Gas Industrialisation Unit (GIU). The first two sites identified by the DoE for LNG plants are Richards Bay (2 000MW) and the Coega Industrial Development Zone (1 000MW) in the Eastern Cape. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) and its Eastern Cape counterpart into energy hubs. The fact that Mozambique has significant offshore deposits is a factor in this ambition. Large commercial gas companies such as Afrox and Air Products have plants within the Coega IDZ. First Automobile Works has established its motor assembly plant next door to Air Products’ air separation unit, giving it ready access to industrial gas. The Coega IDZ is also home to the country’s first gas-fired plant to be run by a private consortium, the Dedisa power plant. A new gas turbine open cycle power plant near Durban has been commissioned by Avon Peaking Power. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-methane-gas

SECTOR INSIGHTS Large gas-to-power plants are planned at two major ports. • The Port of Saldanha has launched a new LPG plant. exploration rights in KwaZuluNatal and natural gas exploration permits in the Free State. Early surveys suggest that the Free State has 23-billion cubic feet of gas underground. If this is confirmed, then four new power stations could be built in the province. Afrox is spending R200-million on a plant to extract helium in the Free State. Tests have begun in the Karoo in search of shale gas. A new addition to South Africa’s pipeline network is a pipe to get natural gas from Mozambique to SOUTH AFRICAN BUSINESS 2019

South African Business 2019  

South African Business 2018 is a trade and investment journal for public and private entities either based in South Africa or looking to tra...

South African Business 2019  

South African Business 2018 is a trade and investment journal for public and private entities either based in South Africa or looking to tra...

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