Gas Power Rigzone South Africa

Natural Gas Gives South Africa a Hand

Nicholas Newman Rigzone June 2016
12107724 - pigeons flying over city hall of cape town, south africa
Cape Town City Hall, South Africa

South Africa now regards natural gas as a serious contributor to reducing its chronic power crisis.

The country’s main public utility, Eskom, along with independent power producers (IPPs), is actively investigating the potential to use gas to help meet their fuel requirements as they reduce their dependence on coal. The aim is to improve energy security through diversification of supply, cut CO2 emissions and strengthen grid stability.

Why gas is the future?

Gas currently provides just 3 percent (1,369 megawatts) of South Africa’s total installed power output of 45,645 megawatts (MW). This is set to rise to 3,000 MW under the government’s Integrated Resources Plan 2010-2030. The attraction of gas-to-power is largely economic in terms of money and time, “given that natural gas is at $0.80 per watt on a three-year build versus $5 per watt for coal on a 10-year build,” Stephen Larkin, CEO of gas/solar energy firm Africa New Energies, told Rigzone recently.

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