The choice of Richards Bay as one of the sites for South Africa’s liquefied natural gas (LNG) power plants will result in a multibillion rand investment in both a gas-fired facility, as well as the related infrastructure. It will also create the opportunity for new and existing industries in Richards Bay to make use of gas rather than electricity.
The port will produce 2,000MW of the 3,126 megawatts allocated to the Gas to Power (G2P) programme. The CEO of RBIDZ, Pumi Motsoahae, says: “We believe the choice was self-evident given the availability of space for a berth for a floating storage and regasification unit (FRSU). The benefit of having substantial electrical capacity coming into the city to feed the smelters and which can now be used to feed electricity back into the grid is also an advantage.”
“The IDZ has been working for over two years to ensure that Richards Bay becomes the key gas port in South Africa and is delighted that the extensive work done has culminated in this announcement,” Motsoahae says.
The selection of Richards Bay as a gas port will not only support the development of an East Coast Gas corridor servicing the major potential gas markets in KZN but also in other provinces such as Gauteng, Mpumalanga, Free State and Limpopo.