Page 15 - DMEA Week 50 2020

DMEA LNG DMEA

ExxonMobil, Vopak weigh up South

African LNG project

SOUTH AFRICA EXXONMOBIL has teamed up with Dutch Vopak has been working in South Africa for
infrastructure operator Royal Vopak to poten- 25 years and operates a terminal in Durban that
South Africa’s existing tially build an LNG regasification terminal in brings ashore petroleum products and chem-
gas supply is dwindling. South Africa. icals. It also has interests in LNG regasification
The pair have signed a memorandum of projects in the Netherlands, Mexico, Pakistan
understanding (MoU) on the project, covering and Colombia.
a joint feasibility study to assess its commercial, South Africa currently lacks LNG import
technical and regulatory aspects. The pair will capacity, instead relying on domestic gas supply
also evaluate what infrastructure South Africa and piped imports from Mozambique. But these
needs in order to harness the benefits of LNG as a supplies are dwindling as fields both in South
reliable, low-cost and clean energy source. Vopak Africa and Mozambique grow mature. Author-
noted that the country could reap this benefit by ities have warned that gas shortages could lead
repurposing older coal-burning power plants, to the closure of state-owned Sasol’s Mossel Bay
converting peaking power stations and using gas-to-liquids (GTL) refinery, which produces
LNG in industry. motor fuels.
“ExxonMobil is excited to work with Vopak to South Africa also wants to expand the role
evaluate innovative approaches to bring compet- of gas in its energy mix in order to reduce its
itive LNG projects to South Africa,” ExxonMo- dependence on coal, which supplies more than
bil LNG Market Development President Irtiza 90% of its electricity. The government’s latest
Sayyed commented. “As a gas industry leader electricity infrastructure development plan
with strategic access to LNG supplies around the envisages an expansion in gas-fired generation
world, ExxonMobil is well-positioned to supply by 1,000 MW by 2023 and 2,000 MW by 2027.
cleaner, reliable energy to power South Africa in But coal is expected to remain a dominant source
the future.” of energy, given the country’s abundant reserves
“Our collaboration with ExxonMobil of the fuel.
will allow us to leverage our global expertise Besides LNG, authorities are also counting
and experience to develop resilient and effi- on South Africa’s offshore gas resources to help
cient LNG infrastructure for South Africa,” boost supply. France’s Total has made two signif-
Vopak LNG President Kees van Seventer icant discoveries at offshore block 11B/12B in as
added. many years. ™

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