S Africa to build LNG regasification terminal for power project

THE government of South Africa is considering building an LNG regasification terminal in the Saldanha Bay to facilitate gas imports for a planned gas to power project. The country continues to seek means to diversify its energy mix away from coal which currently dominates the nation’s energy source.

Eighty-two percent of South Africa’s 47.55GW installed capacity is fired by coal while gas fired plants comprises of 5.14 percent of the total. Following recent electricity challenges, the government is planning a 3,123MW gas fired power plant in an effort to diversify away from coal.

The bidding process for the plant is expected in the first quarter of 2016 with Shell, Mitsubishi and Sasol all expected to participate. If approved, the project could create a considerable gas value chain opportunity for the sub-Saharan Africa region as the country could source LNG from projects expected in Cameroon, Mozambique and Equatorial Guinea.

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