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Transnet, the Coega Special Economic Zone and the Central Energy Fund have jointly issued a request for information (RFI) for the development of a floating storage and regasification unit, gas infrastructure and terminal operator at the Port of Ngqura in the Eastern Cape.
The RFI was issued earlier this week by the three entities, with the CEF taking the lead. It said considerable gas import infrastructure would be required to enable gas supply in the region.
Government aims ultimately to increase the contribution of natural gas from the current 3% to 16% of the country's overall energy supply.
The annexure for the RFI, which Fin24 has seen, emanates from remarks by Minister of Energy Gwede Mantashe during his budget vote speech of 2019, where he announced that the department would implement the importation of LNG with Coega as the initial hub.
The terminal is to include integrated port, road loading and pipeline infrastructure.
"This includes, but is not limited to, an FSRU [floating storage and regasification unit] that will provide gas for common users, marine infrastructure, gas pipelines to the power plants and other gas users and any required common user infrastructure such as gas distribution hub," the RFI said.
The RFI added that in order to realise this long-term vision for enabling a natural gas market, the entities would need to estimate the region's current and future gas needs, and what would be needed to support the sizing and establishment of an independently managed midstream LNG import terminal.
The DMRE is embarking on a gas to power programme with a view to appointing Independent Power Producers (IPPs) to contribute to the production of some 3 000 MW of gas-generated electricity in line with government's 2019 energy blueprint, the Integrated Resource Plan.
A request for proposal (RFP) will be issued at the end of February 2022 to procure 3 000 MW from gas, the statement said. It is anticipated that at least 1 000 MW will be allocated to the Port of Ngqura.
Earlier this year, the Department of Mineral Resources and Energy announced eight preferred bidders in the Risk Mitigation Independent Power Producer Procurement Programme, which included ACWA Power Project DOA, Mulilo Total, Oya Energy Hybrid Facility, Umoyilanga Energy and Karpowership SA.
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