SA to build gas-to-power port infrastructure for R50.3bn to cut coal use
In a bid to reduce its dependence on coal for power generation
SOUTH Africa will invest about R50.3bn in building Richards Bay and Coega infrastructure for a gas-to-power programme to reduce its dependence on coal.A plant at Richards Bay will generate 2,000MW of electricity from liquefied natural gas (LNG) imports and the one at Coega industrial development zone will produce 1,000MW, the Department of Energy said Monday. The government will seek bidders to manage the projects, underpinned by a 20-year power-purchase agreement with Eskom.SA formed a gas industrialisation unit in May to implement its 3,726MW gas-to-power programme after blackouts last year curbed growth when there was a risk of recession. By starting to import LNG, the government can take advantage of low gas prices while reducing reliance on coal.Richards Bay will initially require about a million tons of LNG and Coega 600,000 tons a year, Karen Breytenbach, head of the Independent Power Producer Procurement Programme’s office, said on Tuesday in Cape Town. The ports each needed...
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