South Africa pushes on with LNG import plans

South Africa's state-owned Central Energy Fund (CEF) issued a request for information earlier this month to assess the potential for developing what would be the country's first LNG import terminal.

South Africa wants to expand the role of gas in its economy for environmental and economic reasons, but its domestic onshore gas production is in decline. The government has therefore turned to LNG imports as a solution ahead of the planned development of several large gas fields off the country's coast.

CEF and its partners, Transnet and Coega Development Corp, want to establish an LNG hub in the Coega special economic zone. This hub would consist of a floating storage and regasification unit (FSRU) and associated infrastructure.

South Africa's plans for LNG-to-power projects suffered a setback earlier this year after the government rejected an application by Turkey's Karpowership to operate floating power stations at three of the country's major ports. Karpowership has secured licences to generate power, but still needs environmental approval for the projects.

This article first appeared in Gas Pathways, a platform dedicated to technology and innovation in the natural gas industry. Click here for more information.