South Africa selects ports to develop LNG-to-power infrastructure

The South African Department of Energy is currently in the process of developing procurement documentation for LNG-to-power independent procurement programme. 

In an information memorandum, the DoE noted that South Africa is looking to procure 3 126 MW of new IPP gas-fired generation capacity.

The DoE, together with Transnet National Ports Authority, over the last 18 months, conducted a number of studies on the suitability of locating an LNG import terminal at each of the Ports of Ngqura (Coega), Richards Bay and Saldanha Bay.

The studies showed that the Saldanha Bay requires substantial work not just on the port, but on the grid infrastructure, the servitudes for the pipeline and transmission lines and the location for the power plant.

Due to this, the DoE said the first phase of the LNG-to-power program will aim to identify, select and enable Bidders to develop, finance, construct and operate one gas-fired power generation plant at each of two ports, Coega and Richards Bay.

The Saldanha Bay project has not been discarded completely. The development of the project “remains an opportunity in next phase of the LNG-to-power programme,” the Department of Energy said.

The energy generated by the gas-fired power generation plants will be purchased by Eskom, South Africa’s power utility.

The selected bidders for the two projects will be responsible for LNG supply, provision of the floating storage and regasification facilities (FSRU), supporting port facilities and gas transmission pipelines.

In addition, the selected bidders will be responsible for the arrangements for the potential sale of a modest percentage of gas from the volumes that are contracted pursuant to the LNG sale and purchase agreement to potential third party gas users, the new power generation facilities and the necessary power transmission line to the point of electricity delivery.

The Department of Energy has already issued a request for information in May 2015, and pre-qualified bidders will be invited to submit formal binding proposals to develop, finance, construct and operate the proposed project at the specified port.

LNG World News Staff