MechChem Africa June 2019

Eastern Cape oil and gas opportunities

Also, the province has been proficiently con- ducting studies that look at the industrial gas utilisation beyond 1 000 MW of gas-driven power generation. The significance of the Eastern Cape is that it is endowedwith the possibility of both onshore and offshore gas; gas-driven power generation; and gas importation, handling, trans-shipment infrastructure and industri- alisation. Potential recoverable quantities of indigenous natural gas are in the order of 20-trillion cubic feet onshore (shale gas), and 26-trillion cubic feet offshore. “The recent deepwater drilling in Brulpadda (approximately 1.0-billion bar- rels) in the Southern Outeniqua basin could potentially unlock enough fuel to supply SouthAfrica’s refineries for almost four years. That’s a boon for a country that has always been short of oil and is running out of its scant domestic supply of gas,” adds Gxilishe. “This couldpotentiallyunlockavaluechain of marine and maritime services located at The Coega SEZ, which could in turn trigger opportunities eastwards includingnodes such as the East London IDZ and small harbours along the Wild Coast. Brulpadda-1 and the potential for more discoveries positions the Eastern Cape as an active O&G province,” highlights Gxilishe. In line with SA’s developmental pro- gramme, indigenous gas extracted in this provincemust be beneficiated on our shores, maximising the economic benefit within the region. The Eastern Cape, through DEDEAT, has initiated a strategic framework for the provincial oil, gas and maritime complex, which has provided much greater clarity and support for the socio-economic development of the gas industry. The province, with its gas support initiatives organised in a coherent framework, is well positioned to drive the enablers for a gas economy. q

Marking the success of the 19 th annual African Utility Week, which took place in Cape Town on 14 May 2019, the Eastern Cape province says it will play a pivotal role in highlighting the potential of the province and its progress from an energy front.

S outh Africa’s sunshine coast has prioritised unlocking the Ocean’s Economy through advancing oil and gas opportunities in the Eastern Cape Province. As such, the Eastern Cape is emergingas anenergyhub, reflectiveof South Africa’s approach to a diversified energy mix. “Our participation in one of the discus- sion panels touched on the continued progress the EC Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) has put in theOil andGas Strategic Framework for the province aswell as ongoing activities,” says Bongani Gxilishe, DEDEAT head of department. “Our strategic framework is aimed at enabling a rapid and coordinated development for the province to meet the demand for identified products and services within the gas-to-power value

chain and to ensure that progress within the LNG sector provides for maximum localised benefit.” The above approach is integral to the medium-term objective of enabling and unlocking the exploration of indigenous oil and gas. The province has been actively ad- vancing its readiness for the establishment of gas-enabling infrastructure at Coega as one of the preferred locations identified in the country, thus minimising the risk of uncertainties. Through collaboration and cooperation with various state organs and private developers, the Centers for Disease Control andPrevention (CDC) has conducted extensive preliminary readinesswork, includ- ing technical feasibility studies and advancing environmental impact assessments (EIAs) relating to the gas-to-power infrastructure.

Active Energy Projects in the Province: Coega SEZ projects • Dedisa Power Peaking Plant (Zone 13): The 342 MW Power Peaking Plant, located in the Coega SEZ is a R3.5-billion Foreign Direct Investment project that has been operational since September 2015 and createdover 1490 jobs during its construc- tion phase. • Wind Tower Manufacturing (Zone 3): Wind tower assembling plants from a R310-million investment in the Coega SEZ have created over 390 jobs during construction. • Lay Down Area (Port precinct/Zone 1): Built to cater for abnor- mal cargo related to the REIPPP programme (Logistics), this is a R9-million investment that has contributed to the distribution of wind turbines throughout the Eastern Cape. • Electrawinds (Zone 6): This wind-turbine investment, valued at

R1.2-billion, was initially built to power the World Cup Stadium in Port Elizabeth during the 2010World Cup. Other initiatives in the Eastern Cape • Utility Scale Renewable Energy: The province is host to 16 wind farms and one solar farm, with a total installed capacity of over 1 500 MW. Thirteen facilities have been commissioned while the remaining four are under construction. Numerous other facilities are at a preparatory phase for participation in future procurement rounds. • TheEasternCapeMinigridProject: Thisfirst of its kind servicede- livery hybridminigrid in a deep rural community of the province, provides high quality electricity to 68 households. The project is currently under construction. • East London IDZ: which is host to renewable energymanufactur- ing facilities such as ILB Helios’ Solar Panel Assembly facility. q

20 ¦ MechChem Africa • June 2019