The Coega Development Corporation (CDC) has received an overwhelming number of responses from key local and international industry players after issuing a tender notice in August for an environmental-impact assessment (EIA) for a gas-to-power facility in the Coega industrial development zone (IDZ), in the Eastern Cape .

The proposed gas-to-power plant would be the second power plant in the Coega IDZ after the Dedisa peaking power plant – a R3.5-billion, liquid fuel open-cycle gas turbine with a 342 MW generation capacity.

“The proposed facility will be conveniently situated less than 4 km from the
400 kV Dedisa substation, which will significantly reduce costs for taxpayers and authorities,” noted CDC energy manager Sandisiwe Ncemane in a statement on Thursday.

The CDC emphasised that energy development from gas in South Africa was entering a ‘golden age,’ and gaining significant momentum, adding that energy development from gas was especially important as it would assist the country in meeting baseload energy needs between 2020 and 2030.

Ncemane said the upside for gas to power projects was their relatively shorter gestation period.

The CDC was aware of discussions highlighting some of the challenges with regard to developing the gas-to-power facility, such as infrastructure, which had been raised by industry captains.

“The CDC’s case is strengthened by existing infrastructure, as it reduces costs for business through its proximity to the planned processing facility that will convert liquefied natural gas (LNG) into gas, and a 2 km pipeline to the power plant that will generate electricity from natural gas,” said Ncemane.

However, she added that one of the critical game changers for the CDC was the cost factor.

The Dedisa power peaking plant was being commissioned in Zone 13 of the Coega IDZ, with the existing environmental authorisation for 400 kV transmission lines from the project site to the substation reducing the cost of the gas-to-power project.

The CDC had undertaken at least five EIA studies supporting the gas-to-power solution since 2006. EIA studies had been completed for the rezoning of land in the IDZ and the establishment of a 400 kV transmission line between the plant site and the Dedisa substation, with the marine pipeline servitude EIA under way.

Further, a draft scoping report was also prepared by State-owned power utility Eskom and the Department of Energy’s central energy fund subsidiary iGas for a LNG-to-power project.

State-owned entity Transnet’s port development plans include the LNG terminal at the Port of Ngqura, in the Eastern Cape, identifying several berth options for its deep-water seaport, which is adjacent to the Coega IDZ.

The CDC had approved the Coega Infrastructure Master Plan – a defined services corridor from project site to the Dedisa substation and good access to site through the N2 and ancillary road network.