Opportunities in the South African Natural Gas Market, 2015 – Research and Markets

Research and Markets has announced the addition of the "Opportunities in the South African Natural Gas Market, 2015" report to their offering.

South Africa's energy mix is dominated by coal, complemented by renewable and nuclear energy. The government of South Africa has set targets according to the IRP 2010, which forecasts an energy mix containing a greater contribution from renewable energy such as wind, solar, and hydro. This mix also contains a substantial contribution from gas. The Gas-to-Power programme in South Africa, parallel to the REIPPPP, has been met with delays in recent years.

The programme, which is set to procure 3,126MW, is waiting for an instrumental policy document, the Gas Utilisation Master Plan (GUMP), which will determine the role gas plays in South Africa's energy mix.

While the GUMP may be delayed, the Gas-to-Power programme is slowly making gains. Two carefully selected ports have been earmarked to receive gas via a floating storage regasification unit (FSRU). This prevents the risk of stranded assets, should the program be abandoned. The 2 ports were strategically selected due to centrality and demand. Key to the viability and development of the port is an anchor client that would off-take the majority of landed gas. Ports to see this development will be Eastern Cape (Coega: 1000 MW) and KwaZulu-Natal (Richards Bay: 2000 MW), while the Western Cape will no longer see any LNG activity; the Western Cape will continue with LPG production.

The excess gas that is imported would be available for use in industries such as automotive, as well as commercial buildings and residential homes. This potential demand for industrial use has been estimated at 37.8 million gigajoules. This value is for industries that make use of other fuels and would be willing to convert their operations to natural gas. Those industries that already make use of natural gas receive their gas Mozambique imports via Sasol, which has the monopoly. Sasol was named the primary gas supplier and distributor for certain identified distribution areas by the Gas Act (2001) until 2014.

The demand for natural gas is immense and will see returns, should the hurdles be addressed.

Key Topics Covered:

• Executive Summary
• South Africa's Natural Gas Market
• Value Chain Stakeholders
• Growth Opportunities and Companies to Action
• The Last Word
  

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