Page 24 - Energize April 2021

NEWS

Plans to exploit the use of LNG to mitigate against load shedding

D NG Energy promotes the use of liquified natural gas (LNG) for the generation of

electricity as an alternative to diesel, heavy fuel oil or any other fossil fuel.
LNG is a cleaner and more affordable source of energy that 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 that
have crippled our economies. While we have taken admirable steps to include renewable energy
into our energy mix, gas provides baseload capacity, thus 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 will begin
decommissioning some of the old coal-fired power stations. We therefore require technologies
that can be deployed quicker and safely.
The gas-to-power business is important for South Africa because gas complements
renewable energy in the energy mix by providing a steady, non-variable source of electricity.
Furthermore, gas-powered plants can be built far more quickly and cheaply than other baseload
plants such as coal and nuclear.
The company says that preparations for gas bunkering at Coega are underway. The company
is considering the acquisition of suitable vessels and other associated infrastructure to enable it Aldworth Mbalati
to receive, store, and deliver LNG. First gas could be shipped as early as September 2021.
DNG says its bunkering operations would include a floating storage unit (FSU) which would while other options could be described as
be moored at the Port of Coega. This vessel would receive LNG from gas carriers. Small-scale too costly, too dirty, or too small to be of a
LNG carriers would shuttle between the FSU and ships being bunkered, performing ship-to- major significance.
ship transfers. The important feature is that the bunkering operation is driven on the back of The company adds that LNG would
delivering LNG to onshore customers, in the region, where the small-scale LNG carriers will be also be available for all industries, gas-
utilised. As these vessels are in position fully utilised on other projects, they are readily available to-power (large and small customers),
to deliver bunkers as and when required. industrial processes, logistics and mining
According to DNG, LNG can be supplied to meet South Africa’s electricity generating activities. Gas-to-power, DNG says, is
capacity shortages. Existing peaking plants, which are mostly gas turbines which have been set to become a major contributor to
converted to operate on diesel fuel, and some large diesel-powered reciprocating engines, are the national grid, helping to meet South
used at present outside of peak periods, at an extremely high cost – both in terms of money and Africa’s electricity needs, improve its
environmental damage – just to meet demand and offset the need for large-scale load shedding. economy and reduce, or even eliminate,
The inclusion of LNG in the energy mix is expected to bring much-needed relief to many load shedding.
customers, especially those which can be supplied from a source off the national electricity
grid. LNG would become the main contributor of an efficient and cost-effective deliverable Contact DNG Energy, Tel 010 880-2935

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