In his speech at Africa Oil Week 2019, South Africa’s Minister for Mineral Resources and Energy, Gwede Mantashe, urged investors to pursue investment opportunities in the proposed liquefied natural gas (LNG) hub at the Coega Special Economic Zone (SEZ) in the Eastern Cape.
“The call by the minister is certainly in line with the various activities the Coega Development Corporation (CDC) has been undertaking in the past couple of years to advance its gas readiness capabilities,” says Sandisiwe Ncemane, CDC Project Development Manager: Energy.
“Within the next couple of weeks, the CDC will be engaging various stakeholders, within both the private and public sector, and inviting them to the Coega SEZ for a tour of the proposed sites and to update them on progress thus far,” says Ncemane.
With an established market for LNG within Coega, over the years, the CDC, in collaboration with the Eastern Cape provincial government, has put in place extensive gas market analysis and preparation to enhance Coega’s readiness for the implementation of high impact energy programmes towards an integrated gas economy.
“The Coega SEZ is one of the most advanced in terms of preparations for the LNG hub and is the ideal location for the associated gas to power programmes. One of the critical game changers for the CDC is the cost factor. The 342MW Dedisa Peaking Power Plant currently in operation within the SEZ has existing environmental authorisation for a 400KV transmission line between the plant site and the Dedisa substation, which reduces the costs of the gas to power project for investors quite significantly,” adds Ncemane.
Another factor is that the CDC, as early as 2006, undertook five environmental impact assessment (EIA) studies supporting the gas to power solution.
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