Electricity + Control December 2017

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HAZARDOUS AREAS + SAFETY

The Natural Gas Revolution in South Africa: A Changing Energy Landscape Information provided by CNG Holdings, partner of the Industrial Development Corporation (IDC)

R ecent on- and off-shore discoveries of globally significant quantities of natural gas in Southern Africa – including trillions of cubic metres of natural gas in the Ro- vuma Basin off the Mozambique coast, the biggest global find of natural gas in decades – represent a new dawn for the region’s energy landscape. Natural gas is one of the cleanest, saf- est, and most useful forms of energy, providing the world with over 20% of its energy requirements across power gener- ation, industry and transport applications. In South Africa, at just 3%, the meaningful addition of natural gas to the country’s en- ergy mix will rejuvenate an overburdened, out-dated energy infrastructure and reduce cyclical energy shortfalls. Perhaps even more importantly, it will stimulate the economy by allowing busi- ness and industry to lower their energy and operational spend while creating sig- nificant numbers of new jobs and skills development opportunities. As the market for gas grows, the construction of new conversion workshops, gas filling stations and satellite gas distribution infrastructure, will provide a permanent stream of direct employment. Downstream, training, op- erations and maintenance, bus assembly and manufacturing of trailers, cylinders and other gas equipment will also create sig- nificant employment avenues. The South African government has stated that natural

a combustion temperature of 600°C (150°C higher than petrol and LPG).

gas forms the backbone of regional eco- nomic integration among Southern African Development Community (SADC) member countries. Plans to establish a regional nat- ural gas committee are afoot, which will be tasked with promoting the inclusion of gas in the regional energy mix. Natural gas is already a reality for indus- trial and transport sectors within a 300 km radius of Johannesburg thanks to NER- SA-approved gas traders Virtual Gas Net- work (VGN) and NGV Gas’ development of a compressed natural gas distribution infra- structure, including delivery networks, filling stations and conversion systems. These companies (both divisions of CNG Hold- ings ) have already converted state hospi- tals, canneries and manufacturing and as- sembly plants across a range of industries, in addition to commercial fleets, buses and around 1 000 taxis, to natural gas. In so do- ing, these end users have been able to: Reduce energy/ fuel costs: Natural gas has a high energy content and excellent price/kilojoule ratio, with consistent ener- gy outputs that improve efficiency. Natural gas delivers 20% to 40% cost savings over petrol and diesel. Enhance site and vehicle safety: Lighter than air, natural gas dissipates quickly into the atmosphere, reducing the risk of fire pools. It’s also more difficult to ignite, with

Lower operational and maintenance costs: This cleaner burning fuel reduces residue, stench and carbon build up, low- ering maintenance requirements and ex- tending service intervals and prolonging overall equipment life, both in plants and in vehicles. This reduces downtime and loss of production time. and other harmful greenhouse gases than oth- er fossil fuels. The inevitable introduction of carbon credits in South Africa will em- phasise the economic and environmental importance of natural gas increasingly. Enjoy stable pricing schedules: Natu- ral gas is not prone to the constant price fluctuations seen in crude oil products, and therefore allows far greater budgeting accuracy while increasing customer cash flow. Enhancing access to natural gas: Natu- ral gas can be distributed in various ways: through pipelines; compressed in high pressure cylinders; or liquefied by freezing to -163°C in cryogenic tanks. VGN and NGV Gas receive natural gas at a distribution station in Langlaagte via the Sasol Gas pipeline that runs from Temane to Secunda and then to Johannesburg. It then distributes gas to customers any- where within a 300 km radius of this distri- bution station, managing the entire delivery process on a pay-as-you-use basis accord- ing to customers’ energy requirements. The increased availability in Gauteng of this superior, alternative energy source is enhancing long-term profitability of assets in the industrial and transport sectors. As the gas economy develops, South Africa will be able to increase production efficiencies, economic growth and job creation, and re- ducing reliance on a less-efficient, polluting fuel used in an ageing energy infrastructure. Enquiries: Stephen Rothman. Tel. +27 (0) 860 116 917 or email stephen@cngholdings.co.za Go green: Natural gas emits less CO 2

36 Electricity + Control

DECEMBER 2017