Poised to expand South Africa’s gas industry by addressing sustainability and competitive trade, the country’s Department of Mineral Resources and Energy published a Gas Amendment Bill last month to bring legislation in line with developments in the gas sector.
The document, released on the heels of South Africa’s latest Integrated Resource Plan (IRP) for 2023, establishes new regulations aimed at enhancing the sector’s regulatory framework, while updating many definitions related to the gas industry from the older Gas Act of 2001.
According to the IRP 2023, South Africa anticipates 7,220 MW of new gas-to-power capacity by 2030, considerably upscaling investment opportunities within the country’s burgeoning gas sector. These opportunities will be explored during this year’s Sustainable Infrastructure Development Symposium 2024 and African Energy Week (AEW) 2024 conferences, taking place in Cape Town from March 17-19 and November 4-8, respectively.
Last November, South Africa’s Minister of Electricity Kgosientsho Ramokgopa detailed plans for at least 3 GW of new gas-fired capacity in the country. The plans include a 2 GW mobile facility, a 1 GW combined cycle plant in the Eastern Cape province and a 3 GW combined cycle gas-fired plant in KwaZulu-Natal province.
A recently signed LNG development project in the Mpumalanga province will tap into the newly discovered 3.1 billion cubic feet of natural gas in the town of Amersfoort. Jointly developed by Australia’s Kinetic Energy and the Industrial Corporation of South Africa, the project will initially produce 50 MW equivalent of gas-powered energy with the option to expand to 500 MW in the future.
A recently signed LNG development project in the Mpumalanga province will tap into the newly discovered 3.1 billion cubic feet of natural gas in the town of Amersfoort. Jointly developed by Australia’s Kinetic Energy and the Industrial Corporation of South Africa, the project will initially produce 50 MW equivalent of gas-powered energy with the option to expand to 500 MW in the future.
In the renewable energy space, Minister Ramakgopa indicated that South Africa expects more than 5.5 GW of renewable energy projects to enter commercial operation over the next three years. Last month, property management company Growthpoint Properties entered a Power Purchase Agreement with green energy supplier Etana Energy for 195 GWh of renewable energy per year. Meanwhile, a trio of projects in South Africa’s Northern Cape province – due to begin construction in 2024 and led by renewables developer Scatec – have the potential to boost the country’s renewable energy capacity by 560 MW upon completion.
With its license due to expire in July 2024, government officials are currently waiting on regulatory approval to extend the operating license for the 1.86 GW Koeberg nuclear power station for another 20 years. As the country’s sole operating nuclear power plant, the extension is poised to ensure a more reliable power supply to South Africa’s ailing energy grid.
