South Africa establishes LNG import unit

South Africa has set up the Gas Industrialization Unit with the initial focus of importing LNG to use as fuel for power generation. 

Garth Stachan, a deputy director general at the Department of Trade and Industry said South Africa could be importing at least 3 million tons of LNG to reduce the country’s dependence on coal-fired power, Bloomberg reports.

New government’s unit requires a final approval from the energy ministry.

Additionally, South Africa’s GIU intends to use domestic sources of natural gas, for its gas-to-power program under which the country plans to add 3,126 megawatts of capacity between 2019 and 2025, according to the report.

The government also plans to clarify the rules for the production and transportation of natural gas in order to enable the development of the country’s shale gas reserves in the Karoo region.

Strachan was further quoted as saying that the Gas Industrialization Unit is looking into the possibility of booking supplies from Mozambique and Botswana.

Ammong companies interested in supplying South Africa with LNG is Houston-based Cheniere.

LNG World News Staff