New 1,000MW gas power plan for Coega

Project would cost R8bn, with construction expected to be completed in 2027

Gas is hugely expensive and will only be used for peaking, resulting in gas infrastructure being obsolete within the next two decades. Gas does not appear to be a sustainable development

The Coega Development Corporation (CDC), operator of the 9,000ha Coega special economic zone in Gqebehera, is seeking government authorisation for an environmental impact assessment (EIA) for a 1,000MW liquefied natural gas plant in the zone. The project would cost R8bn, and expected to be completed in 2027.

The plant, on an 18-ha site, would be fuelled by natural gas imported into the port of Ngqura, re-gasified and conveyed via pipeline to the power plant, as well as providing for third-party offtake, the CDC said. CDC spokesperson Ayanda Vilakazi said the EIA process should take about a year.

“The CDC sees gas beyond power generation as an enabler for industrialisation. By proactively managing the implementation of the gas readiness programme through the EIA, the CDC wishes to advance its readiness for establishing gas enabling infrastructure at the Coega special economic zone to reduce the scope and uncertainty for prospective investors,” he said. A prospective investor is yet to be identified.

Vilakazi said the CDC was aligning its activities with the Integrated Resource Plan (IRP).

The IRP, which outlines new power generation capacity, states that natural gas has the capacity to generate 3,000MW by 2030.

The power produced by the new project would be transferred to the existing Dedisa Peaking Power plant for distribution onto the national grid.

The Coega special economic zone was chosen to be the country’s LNG hub because it already hosts a number of energy projects, including by Dedisa.

Vilakazi said with an established market for LNG within Coega itself, the CDC, together with the Eastern Cape provincial government, has put in place extensive gas market analysis and preparation to enhance its readiness for the implementation of high impact energy programmes towards an integrated gas economy.

However, Gary Koekemoer of the Algoa Bay Ocean Stewards, an environmental lobby group, said: “In general terms we don’t think gas is the best fit for South Africa both environmentally and economically. Burning gas gives off significant amounts of carbon methane via leaks.

“Economically, gas is hugely expensive and will only be used for peaking, resulting in gas infrastructure being obsolete within the next two decades. Gas does not appear to be a sustainable development to us”, said Koekermoer.