Tag Archive | LNG

Gas Utilisation Master Plan gets things going

Gas a “game changer” in energy mix…

gas pipelineWith the publication for comment of the Gas Utilisation Master Plan (Gump) by the department of energy (DoE), South Africa came a step further towards the finalisation of its Integrated Energy Plan (IEP), meaning also that the document has received approval by the cabinet.

The document, based on a Green Paper released by DOE some years ago, provides a framework for investment in gas-supporting infrastructure and outlines the role that gas could conceivably play in the electricity, transport, domestic, commercial and industrial sectors.

LNG and gas, offshore -onshore

The Gump outlines, amongst other issues,  the import of liquified natural gas (LNG) and piped gas from Namibia and Mozambique and plans for production of natural and shale gas in South Africa.  A plan to have 67 GW of installed gas generation by 2050 is considered by the paper.
The plan is particularly relevant at the moment with Eskom having to rely, as grid backup during the current winter, on expensive diesel-fueled open-cycle gas turbines. The Gump proposals on electricity generation, talk of conversion to closed-cycle turbine power using gas.

The paper also expands on importing electricity from gas sourced from Mozambique and Namibia with lines to the Eskom system grid including imports from the largest present and mainly undeveloped gas fields in Tanzania neighbouring the northern Mozambique fields.

Learning curve

New minister of energy, Tina Joemat-Pettersson, will have deepen her knowledge base very quickly on such matters as the IEP, energy resources and liquid fuels plans, all urgent and with immediacy.   Such issues as the process of energy integration overall and the issue of the stalled independent power producers (IPP) programme in terms of the held-over Independent System Market Operators (ISMO) Bill, are also waiting for position on the energy starting track.

DoE has also pointed to its intended coal gas programme with an IPP programme for the generation of some 6,500MW of power. The department further states that the Gump takes a 30-year view of the industry. It not only deals, they say, with the regulatory environment and economic predictions but does touch on social issues and environmental matters as well.

The master plan also talks of a gas line from Mozambique to Gauteng via Richards Bay and how gas will be distributed and stored, together with the issue of LNG terminal storage.

As a separate issue to Gump but part of the same overall plan, DOE has also released public comment the issue of investment by private merchants in fuel and gas storage, particularly referring to Saldanha Bay.

Storage, a vexed issue

Fuel storage at the present moment is traditionally undertaken by the major oil companies, in some cases integrated with state facilities and who can more easily absorb some of the more riskier aspects of this sector with their vertical interests both upstream and downstream.

DoE sees a greater contribution from investment by private merchants in storage and is currently attempting to re-structure the system to attract and build the industry to counter present storage problems and for early consideration as part of South Africa’s strategic fuels plan and as part of a licensing and regulation background.

In the short term, DoE says in its Gump programme, such a system is needed in terms of LNG holding reserves, imported as LNG or from state owned PetroSA’s gas-to-liquids plant at Mossel Bay, until more natural gas comes down the envisaged pipelines from the current exploration areas.

At the moment Sasol pipes 188-million gigajoules a year of gas into South Africa from Mozambique.  The possibility of LNG re-gasification plants offshore on the West coast in the near future is also debated in the Gump programme released.

Other articles in this category or as background
http://parlyreportsa.co.za//energy/parliament-re-starts-oilsea-gas-debate/
http://parlyreportsa.co.za//energy/shale-gas-exploration-gets-underway/
http://parlyreportsa.co.za//energy/oil-and-gas-industry-criticizes-minerals-petroleum-bill/
http://parlyreportsa.co.za//energy/future-clearer-as-gas-amendment-bill/

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Carbon Capture Storage Technology Underway in SA

SANEDI, the South African Energy Development Institute, told the portfolio committee on energy that work was being conducted on extraction of carbon dioxide from fossil usage and pilot drilling was taking place near Port Elizabeth on the geological storage of carbon dioxide at great depth.

Dr (Prof) AD Surridge of SANEIRI, the research body of SANEDI, said that in common with other countries and backed by the department of energy, Sasol, PetroSA, Eskom, the UK and Norwegian governments, Total, Anglo Coal, Xstrata, Exxaro and others, carbon capture storage as a system was a real possibility in South Africa.

This inland location for tests had been chosen for reasons of cost, but vast suitable geological areas had been located offshore in South Africa where storage for many hundreds of thousands of years would be safe.

Dr Surridge said, “It is not so much as to whether the technology works. We know it works”, he said. “Such has been operating at global sites for many years. It’s a question of scaling up the finance and doing things on a far bigger scale to get ahead”.

SANEDI operates as part of the Central Energy Fund (CEF) which also manages the operation and development of the oil and gas assets and operations of the South African government with its subsidiary, PetroSA. A CEF subsidiary, iGas acts is involved in the development of LN gas and LP gas.

Kevin Nassiep, CEO of the operating research body SANERI, told parliamentarians that in financing its various operational scenarios to conduct energy research across all aspects of energy in South Africa, it had submitted four financial models to Treasury varying from models to develop the institute as an independent entity with a full programme of projects, a model with gradual transition over a number of years to that of SANEDI in a survival mode.

He said that the fourth option had been chosen by Treasury in its budget and consequently SANEDI was just surviving. SANERI was operating at very low level insofar as its objectives were concerned and “the two building blocks of sustainable energy solutions to South Africa’s search for a low carbon economy, that of innovation research and energy conservation, were being undertaken at slow speed.”

SANEDI’s brief in terms of the National Energy Act was to direct, monitor and conduct energy research and promote energy efficiency through SANERI, Nassiep said. Their goals were to be in direct support of the department of energy (DOE) role and DOE’s energy policy, and to assist in all matters regarding climate mitigation.

He said that that in most matters regarding radical energy decisions, South Africa in each major topic had to decide whether to become an “innovator” by becoming a leader in that field; whether to be an “adaptor” and take existing standard prototypes and change these to suit South African systems or be a “follower” and simply “buy off the shelf” in order to meet cost restraints or because such suited the occasion.

Dr Willie de Beer, dealing with electricity energy distribution matters for SANEDI, said that with the collapse of the centralised electrical distribution concept known as EDI holdings there was a resurgence of suppliers pushing their own proprietary systems in the search for a better and “smarter” national supply grid. Consequently, conformity was a problem unless it was controlled.

Lack of funding in all aspects of the work being undertaken by the research body, SANERI, appeared to be the issue, Parliament was told.

Dr de Beer told parliamentarians that urgent decisions had to be taken in this regard to underpin economic growth and an inter government smart grid task group with a smart task team financed properly so that “plug and play” commonalised systems were adopted and a lead given by a common government “voice”.

But, he said, the “smart grid” was not emerging quickly enough because there were too many players and nobody was either prepared to invest properly or take risk. There was little in the way of team approach, he said, and intergovernmental participation across the board had not been achieved.

David Mahuma of SANERI described a number of biomass projects either converting energy from invasive alien plant life; biogas projects working in agricultural situations and mini-hydro schemes currently being investigated. This was all part of the “Working for Energy programme”, he said, and current focus was to help communities with pelletised bio-mass waste systems.

SANERI described to parliamentarians a number of projects including LPG driven taxis, which were succeeding in KwaZulu-Natal and a biomass piggery plant in Mpumalanga that was providing its own electrical energy needs and some to spare for the local grid.

 

 

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