South Africa details LNG-to- power programme

11 October 2016

Sian Crampsie

South Africa’s Department of Energy (DOE) has released long-awaited details of a proposed LNG-to- power programme. The LNG-to- power IPP Programme (LNG IPPPP) is designed to boost development of South Africa’s gas industry as well as increase power generation capacity.

In a memorandum release at the beginning of October, DOE said that it had chosen two sites for the development of two new LNG gas-fired power plants. It plans to issue a request for qualifications later this year, and a request for proposals from pre-qualified bidders in August 2017.

Prospective bidders will be asked to develop an integrated gas-to- power installation at either of the two earmarked sites – Coega, near Port Elizabeth, and Richards Bay on the east coast. The projects will include the supply of the gas, a floating storage regasification unit, port infrastructure, a pipeline to deliver the gas to the new power plant, as well as the construction of the plants and its connection to the national grid. There will also be the possibility of supplying gas to residential and commercial customers. The Coega power project will be 1000 MW while Richards Bay will be 2000 MW. 

The South African government says that the country has a number of economically viable sources of natural gas that could be introduced by 2040, including shale gas and deep water offshore fields. Exploration of these resources would boost economic growth and investment, as well as improve energy security, the government says.

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