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Energy giants in Coega gas-fired power plant feasibility study
Posted on: Friday, 29 July 2005. Article source: The Herald
A conglomerate of energy giants is working to confirm the feasibility of an integrated liquefied natural gas terminal and gas-fired power plant at Coega.
Eskom confirmed this week that it was conducting the study in collaboration with iGas and Shell.
“Work is ongoing to mature the technical, environmental and commercial aspects of the project with the intention of reaching an investment decision in 2007,” said Eskom spokesman Fani Zulu.
Should the project receive the green light, it would be the first gas-fired power plant in the country. The plant would have a capacity of 1 600MW and provision would be made to expand the LNG terminal and power plant to cater for future gas demand.
“This plant will be integrated into the national electricity grid. As such, electricity will flow, taking the path of least resistance, and find its way to users determined by the laws of physics. There are no dedicated customers and neither is the feasibility dependent on any one load materialising,” said Zulu.
The project is, however, subject to obtaining the relevant licences and permits from the National Electricity Regulator for electricity generation and the operation of the regasification plant from the Environmental ROD.
These have not yet been applied for, said Zulu.
He also said funding for the “multi-billion rand” plant had not yet been finalised.
In December, the department of minerals and energy called for expressions of interest in two gas-fired power plants “worth R6-billion”. More than 90 companies from across the world had made submissions.
They included Shell, Mitsubishi and Siemens Power, Alstom, CDC Globaleq, Tata Power and local BEE companies Shanduka Resources and Global African Power.
Recently it emerged that Eskom, iGas and Shell were the successful candidates. iGas is a subsidiary of the state-owned South African Central Energy Fund, with the mandate to facilitate the development of natural gas infrastructure within southern Africa, and handles the gas infrastructure aspects of the project.
Shell, the world’s largest private producer and supplier of LNG, deals with the supply of gas to the terminal.
On the benefits of a coastal LNG power plant at Coega, Zulu said it was among the “most efficient greenfield capacity expansion options” to meet South Africa’s rapidly-growing power demand.
He said gas-fired power plants had a high thermal efficiency, ensuring efficient use of natural resources and relatively low CO² emissions.
“LNG terminals and related facilities have an excellent safety record when compared with other large-scale industrial operations,” said Zulu.
LNG terminals have been functioning at ports in Italy, Belgium, France, Japan, Korea, Spain, Turkey, Puerto Rico, Dominican Republic, Taiwan and the US for several decades.
Eskom confirmed this week that it was conducting the study in collaboration with iGas and Shell.
“Work is ongoing to mature the technical, environmental and commercial aspects of the project with the intention of reaching an investment decision in 2007,” said Eskom spokesman Fani Zulu.
Should the project receive the green light, it would be the first gas-fired power plant in the country. The plant would have a capacity of 1 600MW and provision would be made to expand the LNG terminal and power plant to cater for future gas demand.
“This plant will be integrated into the national electricity grid. As such, electricity will flow, taking the path of least resistance, and find its way to users determined by the laws of physics. There are no dedicated customers and neither is the feasibility dependent on any one load materialising,” said Zulu.
The project is, however, subject to obtaining the relevant licences and permits from the National Electricity Regulator for electricity generation and the operation of the regasification plant from the Environmental ROD.
These have not yet been applied for, said Zulu.
He also said funding for the “multi-billion rand” plant had not yet been finalised.
In December, the department of minerals and energy called for expressions of interest in two gas-fired power plants “worth R6-billion”. More than 90 companies from across the world had made submissions.
They included Shell, Mitsubishi and Siemens Power, Alstom, CDC Globaleq, Tata Power and local BEE companies Shanduka Resources and Global African Power.
Recently it emerged that Eskom, iGas and Shell were the successful candidates. iGas is a subsidiary of the state-owned South African Central Energy Fund, with the mandate to facilitate the development of natural gas infrastructure within southern Africa, and handles the gas infrastructure aspects of the project.
Shell, the world’s largest private producer and supplier of LNG, deals with the supply of gas to the terminal.
On the benefits of a coastal LNG power plant at Coega, Zulu said it was among the “most efficient greenfield capacity expansion options” to meet South Africa’s rapidly-growing power demand.
He said gas-fired power plants had a high thermal efficiency, ensuring efficient use of natural resources and relatively low CO² emissions.
“LNG terminals and related facilities have an excellent safety record when compared with other large-scale industrial operations,” said Zulu.
LNG terminals have been functioning at ports in Italy, Belgium, France, Japan, Korea, Spain, Turkey, Puerto Rico, Dominican Republic, Taiwan and the US for several decades.
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