Page 9 - GLNG Week 43

GLNG AFRICA GLNG
SAOGA chief raises questions about the future role of gas, LNG in IRP
POLICY
THE head of the South African Oil and Gas Alliance (SAOGA) has raised questions about the role that natural gas will play in the imple- mentation of the government’s new Integrated Resource Plan (IRP), which will govern the pro- curement of power generation capacity during the period ending in 2030.
Niall Kramer, SAOGA’s executive director, indicated last week that he did believe the adop- tion of the IRP would benefit the country. He said that the plan would provide South Africa’s energy sector with the direction and certainty it needs, according to Africa Oil Week.
Kramer also commented, though, that the IRP appeared to envision a relatively low-profile role for gas, especially in the form of LNG, in the country’s future energy mix. The plan anticipates that South Africa will ramp up efforts to explore for and develop domestic gas reserves, but it does not make detailed provisions for LNG imports, he explained.
He also called this lack of specificity with respect to LNG “surprising” but stressed that SAOGA was not yet in a position to draw con- clusions. Like all other parties involved in the energy sector, the group will need to review and discuss the IRP more thoroughly, he said. Until then, he remarked, “the devil remains in the details.”
Kramer further stated that he was particu- larly curious about the IRP’s approach to LNG
procurement models and related matter. He said he saw this as the most important issue in need of clarification, especially since the fulfilment of the plan will hinge on LNG imports.
In the IRP, he noted, South Africa’s Depart- ments of Energy and Mineral Resources state that they expect the country to gain 3,000 MW of new gas-fired power generation capacity by 2027, with the first 1,000 MW coming on stream by the end of 2023 and the remaining 2,000 MW following by the end of 2027. LNG is sure to account for a sizeable portion of the gas used by these new facilities, and South Africa ought to take steps to make sure its ports can handle the additional volumes, he asserted. It is not clear, though, whether the government’s plan devotes adequate attention to the matter, he added.
Questions about the role of LNG will be espe- cially important in Coega, he added. “Coega has been identified as the first port for LNG import infrastructure and a gas-to-power-plant pro- gramme, and we will need to see how LNG will be moved from Coega – probably in virtual tank- ers or by ship,” he said.
Kramer noted, though, that other ports also deserved attention. “Despite Coega being the preferred port of entry, Richards Bay has indi- cated a viability study is under way and Saldanha may still want to import LNG independently, meaning we could still have several ports importing LNG,” he commented.™
Kramer further stated that he was particularly curious about the IRP’s approach to LNG procurement models and related matter.
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