The Eastern Cape Provincial government aims at strengthening the province’s position and assist in navigating the unchartered territory of creating an oil and gas industry that will service the province and South Africa, whilst providing unprecedented stimulus to the Eastern Cape economy, The Province sees the gas industry spanning through all the activities in the value chain for supplying gas for power, commercial and industrial use.
This was revealed in a session held recently with some of the country’s most influential players to “help build a compelling role for the Eastern Cape in the country’s multi-billion oil and gas industry”. Key participants in this project includes, Development Bank of Southern Africa, the Presidency, Central Energy Fund, Shell, Price Waterhouse Coopers, the Sector Training and Education Authorities, the national Departments of Energy, Trade and Industry, the Independent Power Producers Office provided crucial input into the plan.
Vital provincial role players such as the Coega Industrial Development Zone (IDZ), East London IDZ, Nelson Mandela Bay Metropolitan Municipality (NMBMM), the city’s business chamber and the Eastern Cape Premier’s Office, are key to delivering a completed action plan for this project.
In response to Masiphathisane call to action the alignment of programs; support of the gas industry investment efforts of government and private / business sector the Eastern Cape is crucial. This also contributes to the extensive work conducted to align to pivotal national programs such as Operation Phakisa, the Integrated Resource Plan, nine-point plan, the Industrial Policy Action Plan, which are underpinned by the National Development Plan.
The province’s proposed gas industry plan outlines five scenarios and pathways that are likely to succeed in the province over next 10 to 15 years. Coega IDZ has been earmarked as the preferred site and have undertaken environmental studies for four sites which it has identified for the power plant and land-based liquid natural gas (LNG) terminal. It has also completed the preliminary work for the combined cycle gas turbine (CCGT) power project which entails the LNG facilities and gas-to-power plant. It is already the home of the Dedisa power station which could be converted to gas.
Furthermore, gas energy investors have already shown interest in Coega being their preferred location. The province’s plans for a gas economy fit well with its aspirations to become the hub for cleaner energy. The Eastern Cape is already home to 16 wind farms and one solar farm.
This project in support of a gas industry project also provides an opportunity to build more momentum for increasing the business appetite for gas energy.
The Eastern Cape Provincial Government is confident that good local demand which will further strengthen our business case can be built. Locally-produced gas energy will have the knock-on benefits of securing energy supply, be cheaper, and create more business opportunities and jobs which will grow the Eastern Cape Province’s economy.