Page 29 - Energize March 2021

VIEWS AND OPINION

shuttle between the FSU and ships being electricity system is under pressure due to plant break downs, peak power plants (pumped
bunkered, performing ship-to-ship transfers. storage and diesel plants) are utilised outside of peak at an excruciatingly high cost to
The important feature is that the bunkering the country. LNG offers a cheaper alternative to diesel. This does require a conversion of
operation is driven on the back of delivering the open cycle gas turbines to run on LNG as a primary source and diesel as a secondary
LNG to on-shore customers in the region, source and our understanding is that the conversion process is underway and should be
where the small scale LNG carriers will be ready by mid-2022.
utilised. As these vessels are in position, fully
utilised on other projects, they are readily 8. What impact will the inclusion of LNG in the energy-mix have on the cost of electricity
available to deliver bunkers as and when to consumers?
required. Our capex is not standing still. The inclusion of LNG in the energy mix should bring some relief to many customers, notably
to those who are able to be supplied from a source not on the grid. LNG will become the
5. What is the project expected to cost? main contributor to an efficient and cost-effective deliverable while other deliverables can be
Approximately USD150-million. described as too costly, too dirty, or too small to be of a major significance.

6. Will LNG be an affordable source of 9. Will industry be able to purchase LNG for their own heating and process
energy given the cost of importation requirements? Or will it only be available for electricity generation?
and the construction of a local Our LNG will be available for all industries, gas-to-power (large and small customers),
bunkering facility? industrial processes, logistics and mining activities. Gas-to-power will become a major
DNG will be able to deliver affordable LNG contributor to the national grid.
since the required infrastructure will be in
place for other projects and therefore the 10. What percentage of demand will come from the marine sector?
costs for delivering a first-class bunkering LNG has become the accepted fuel for vessels since the 2020 requirement of 0,05%
service will mostly be attributed to those emissions of sulphur. Many new ships are equipped with dual-fuel main engines. There are
projects’ costs. currently 385 vessels which use LNG and a further 185 new builds are on order. This number
will grow. Currently, 3 MTPA of LNG is being consumed. By 2025 this volume is expected to
7. If gas-to-power is to be used for grow to between 8 and 10 MTPA and by 2040 the volume is predicted to reach between 35
peak generation, or to “smooth out” and 40 MTPA. As can be seen, the marine sector is becoming an important sector in LNG.
variances in renewable energy as has DNG is positioning itself to be an important part of the bunker sector by offering bunkers
been suggested by some experts, is the to all LNG burners, being placed in the middle of the main world trade routes, east and west.
demand sufficient to warrant the cost of By offering bunkers in this important position, ship owners will be able to carry more cargo
this project? and reduce the quantity of bunkers to be carried per long haul passages, creating more
While South Africa’s capacity shortages profitable voyages. n
tend to be mostly unmanageable at peak,
it is common knowledge that when the Send your comments to rogerl@nowmedia.co.za

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