Page 28 - Energize March 2021

VIEWS AND OPINION

Gas in South Africa: How viable is it?

by Roger Lilley, Now Media

Liquid natural gas (LNG) is regarded as one of the cleanest fossil-fuels available. It is used widely in peaking
plant around the world to provide additional electricity quickly. It has also been touted as a possible

replacement for coal in some older power stations.

nergize spoke to Aldworth Mbalati, the founder and CEO of DNG Energy about the
potential for LNG in South Africa. DNG is building a bunkering service at the port of
ECoega to supply the country with LNG.

1. Please explain why there’s a focus on LNG? What’s so special about the gas-to-
power business?
LNG is a cleaner and more affordable source of energy. It is available now to power various
industries, enabling a transition into a net-zero emitting future. The gas-to-power business
is important for South Africa and the whole region as we battle energy shortages which have
crippled our economies. While we have taken admirable steps to include renewable energy
into our energy mix, gas provides baseload capacity thereby giving investors certainty in terms
of energy availability on a continuous basis.
We are also aware that current efforts to plug our capacity shortages are not enough to
give us an adequate reserve margin as we begin decommissioning some of the old coal-
fired power stations. We therefore require technologies which could be deployed quickly and
safely. Gas-powered plants can be built far more quickly than other baseload plants, like coal
or nuclear.

2. When would work on the Coega bunkering facility begin, and how long will it be Transnet National Ports Authority (TNPA),
before LNG can be stored there? the National Energy Regulator of South
Preparations for our bunkering operations in Coega are underway. We are in discussions with Africa (Nersa), The South African Maritime
various partners, facilitating acquisition of vessels and other associated infrastructure which Safety Authority (SAMSA), the Department
we will use to receive, store, and deliver LNG. We are looking into delivering the first gas of Environmental Affairs, the Department
molecule in September 2021. of Fisheries and Forestry (DEFF), the
Department of Human Settlements and
3. What capacity will be built at Coega? How much LNG could be stored there? Water Affairs (DHSWA) and the Department
We plan to begin with 38-million GJ. of Transport.
Our bunkering operations will include
4. What is involved in the building and operation of a utility-scale LNG bunkering facility? a floating storage unit (FSU) which will be
DNG is planning to utilise bunkering vessels to receive, store, transfer and regasify LNG. We moored at the Port of Coega. This vessel
are in a process of acquiring these vessels while we consider building our own in the future. will receive LNG from carriers coming from
However, the process requires various regulatory permits from regulatory authorities, viz. our suppliers. Small scale LNG carriers will

Image credit: DNG Energy

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energize | March 2021 | 26