Transnet ports will be ready for gas IPPs | Fin24
 
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Transnet ports will be ready for gas IPPs

Sep 29 2015 21:30
Matthew le Cordeur

Cape Town – Transnet has prepared various infrastructure scenarios for the import, storage and transmission of gas ahead of the procurement of 3 126 MW of gas-fired power generation that will roll out between 2019 and 2025.

Mark Gregg-MacDonald, Transnet group executive for planning and strategy, told stakeholders at the Gas Options meeting in Cape Town that the state-owned entity was prepared to engage with the Department of Energy to speed up the gas-based independent power producers (IPPs) programme.

“Transnet is preparing South Africa’s Port system to ensure cost-effective, efficient, safe and environmentally responsible facilities for gas imports, storage and transmission,” he said.

"Transnet won’t hinder the process," he said. "The technical timelines are doable."

Floating power plants could be moored in the short-term in the ports of Saldanha (330 MW), Ngqura (600 MW) and Richards Bay (820 MW).

Its medium- to long- term solution would see the development of carrier terminals, land-based storage and re-gas facilities, a gas distribution hub and transmission lines to IPP and other users, who could then transmit power into the Eskom electricity grid.

SA Oil and Gas Association CEO Ebrahim Takolia told the delegates that gas currently accounts for 3% of the country’s electricity mix.

“The real challenge is how we build and finance infrastructure. It will cost between $4.5bn (R62.75bn) to $6bn (R83.7bn) to create 3 000 MW of gas.”

MAP: Long-term planning for gas infrastructure

Key: Yellow triangle (potential LNG import facilities and gas distribution hubs for moderate to big gas scenarios); purple line (existing gas pipelines); black line (potential pipeline for moderate gas scenerio); red and yellow dashed lines (potential pipelines for high to big gas scenarios); red circle (offshore gas fields).

Source: Transnet long-term planning framework 2015 and Operation Phakisa Oil and Gas Lab

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