The Department of Energy (DoE) this week announced the Coega Industrial Development Zone (IDZ) as one of the locations for the gas-to-power programme, with 1000 MW of the power facility allocated to the zone. The operation is expected to total R25 billion. The announcement was made at the South African Gas Options Conference currently taking place in Cape Town.
“This project will allow the Coega IDZ to become a diverse energy user, in conjunction with building the local energy sector. The project will also serve as a significant source of socio-economic growth,” said Sandisiwe Ncemane, CDC Business Development Manager – Energy Projects.
The CDC has empowered growth and development by driving sustainable socio-economic development in the Eastern Cape and the country at large. The gas-to-power project is key for energy security, diversity and socio-economic development.
“The implementation of this gas-to-power project will allow greater energy independence, which will boost South Africa’s gross domestic product (GDP). It will also help create direct and indirect jobs,” added Ncemane.
Ncemane said that the CDC has proved its readiness for gas-to-power and has established itself as the ideal location for both renewable and conventional energy. The CDC conducted a Pre-Feasibility Study under the guidance of the DoE which confirmed suitability and viability (strategic, technical, financial, regulatory, legal and commercial) of a gas-to-power station to be located at the Coega IDZ.
The Coega IDZ, consisting of 14 zones with a total of 11 500 hectares, is already home to the 342 MW DEDISA Peaking Power Plant (PPP), designed for conversion to gas–driven. The DEDISA PPP, as a testament to CDC’s ability to implement mega infrastructure projects, become operational in 2015 after its construction was completed on record time.
The Eastern Cape MEC for Economic Development, Environmental Affairs and Tourism, Sakhumzi Somyo, during the conference echoed the Province’s readiness to receive the gas-to-power programme at the Coega IDZ.
“The Industrial Policy Action Plan (IPAP) which intends to use gas as one of the pillars for the re-industrialisation of our economy, sets the scene for the Eastern Cape to become a dynamic hub for South Africa’s gas services sector.
“The Coega IDZ, which is one of our Provincial entities, is the perfect gateway for the gas industry. This complex has the benefit of having the newest port in South Africa (Port of Ngqura), and is designed to easily accommodate an LNG project. Coega is an operational IDZ, which has shown its ability to support and manage mega projects: ensuring they are delivered on time, at the right quality, within budget and in a way that realises the socio-economic objectives of our Government.”
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