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R-LNG via the ROMPCO pipeline a viable alternative for SA industrial customers

16th April 2024

     

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This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.

Regasified Liquid Natural Gas (R-LNG) transported via the existing the Republic of Mozambique Pipeline Investments Company (ROMPCO)’s Mozambique to Secunda Pipeline (MSP) is a viable alternative for South African industrial customers to mitigate ongoing loadshedding and cut energy costs, comments Motlokwe Sebake, GM Corporate and Commercial Affairs.

LNG is natural gas cooled to a liquid state for easier transportation and storage. It can be regasified at the point of use and burned as fuel for power generation, heating, or industrial processes. R-LNG has several advantages over pipeline gas, such as reduced emissions, increased flexibility, and lower infrastructure costs.

A joint venture between the governments of South Africa and Mozambique and Sasol, ROMPCO operates an 865 km pipeline that transports natural gas from Mozambique’s Pande and Temane fields to markets in both countries.

The pipeline supplies about 90% of South Africa's gas demand, mainly for industrial use. However, the pipeline gas supply from Pande and Temane is expected to decline in the next few years as the fields mature and deplete.

To address this challenge, ROMPCO is exploring the possibility of connecting LNG from Mozambique's Matola terminal being developed by Beluluane Gas Company (BGC), a joint venture between Gigajoule, a South African energy company, and TotalEnergies, a French oil major.

The Matola terminal will have a floating storage and regasification unit (FSRU) that can receive LNG shipments from various sources and deliver regasified gas to a gas-to-power plant to be built at the Beluluane Industrial Complex and, in addition, supply gas to the South African market via the ROMPCO pipeline. The terminal is expected to start operations by mid-2026 and have a capacity of two million tonnes per annum (MTPA) of LNG.

“Connecting LNG supply from Matola with the ROMPCO pipeline will enhance security of supply to the South African energy market and ensure that the MSP is used to its full capacity, factoring in the declining Pande and Temane fields,” comments Sebake. LNG can also help mitigate loadshedding in South Africa due to insufficient power supply from a coal-dominated base load grid.

“R-LNG from ROMPCO is an attractive option for South African industrial customers. We can leverage our existing pipeline network and the new Matola terminal to import LNG from Mozambique and other sources. LNG can also complement South Africa’s efforts to transition to a low-carbon economy and increase its energy security,” concludes Sebake.

Edited by Creamer Media Reporter

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