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    South African Incomer Renews Gas Commitment

Summary

New energy minister Mmamoloko Kubayi has pledged her support to the country’s 3,700 MW gas-to-power programme in a speech this week.

by: Mark Smedley

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Africa, Natural Gas & LNG News, Africa, Renewables, Gas to Power, Shale Gas , Political, Ministries, Contracts and tenders, News By Country, South Africa

South African Incomer Renews Gas Commitment

South Africa’s new energy minister Mmamoloko Kubayi has pledged her support to the country’s 3,700 MW gas-to-power programme, in a speech made May 16 to a conference in Cape Town.

The minister, appointed by President Jacob Zuma in a controversial late March cabinet reshuffle, has kept a low profile but confirmed in her recent speech that she remains committed to continuing a planning process on South Africa’s future energy mix. This process has come under fierce scrutiny, amid fears that it may usher in a costly new nuclear bid programme, in which there is considerable scope for corruption.  

“The preliminary outcomes of updated planning scenarios point to South Africa requiring installed generation capacity with high load factor, or base load, provided by a mix of technologies such as coal, regional hydro, nuclear and gas of around 45 to 55 GW for the next 30 to 40 years, while renewable power and gas-to-power could be applied to service the non-baseload requirements,” said Kubayi.

“Natural gas is capable of providing more than just electrical power and, in our assessment, it can also provide direct heat and chemical feedstock for industrial processes, commercial and residential cooking and heating applications as well as an alternative fuel source for transportation purposes. Depending on the economics, water desalination capability from natural gas-to-power projects at coastal locations is also possible.

“Our gas strategy and vision must be viewed within the context of a wider government strategy to grow the economy,” she said.

Energy minister Mmamoloko Kubayi is a parliamentarian for the ruling ANC, until March she chaired parliament's committee on posts and telecoms (Photo credit: SA National Assembly)

The minister recalled that there is an existing plan to secure “an initial” 3,700 MW (3.7 GW) of new gas-fuelled power plants: “As the minister of energy, I wish to reiterate my support for this programme and to assure you that we intend to proceed with the vision and policy objectives that we have outlined.”

There had been concerns about the South African government’s commitment to gas and to renewables, because of delays by the giant state power utility Eskom to sign off on 37 outstanding renewable energy projects. 

It was feared this might also delay progress on new gas projects at Coega and at Richards Bay, where imported gas could be used for both power generation and for industry.

Prospect of shale gas exploration

Earlier this month, the country's trade and industry ministry said expanding the use of gas would focus initially on LPG, rather than imported gas/LNG. South Africa already produces modest volumes of indigenous gas, and imports gas by pipe from neighbouring Mozambique.

South Africa's mineral resources minister Mosenbezi Zwane is expected to award the country's first shale gas licences by the end of September, the head of Petroleum Agency South Africa, Lindiwe Mekwe, told Reuters earlier this week. Shell and Falcon Oil & Gas are said to be among the firms whose applications are being reviewed; but a year ago Falcon had predicted it might receive such a licence by the end of 2016

 

John Fraser