South Africa’s state-owned Public Investment Corporation (PIC) has approved a new natural gas strategy designed to strengthen the country’s energy security and advance decarbonization efforts.
The strategy, aligned with national policy frameworks including the National Development Plan, the Draft Gas Masterplan, and the Integrated Resource Plan 2025, provides for PIC-funded investments and the mobilization of external capital across the midstream and downstream gas value chain.
The PIC stated that each investment will be rigorously assessed on a project-by-project and risk-adjusted basis, ensuring sustainable financial returns for client investment portfolios.
The strategy is based on five key pillars. These include the development of gas infrastructure and accelerating investment to optimize existing assets, the conversion of the Ankerlig and Gourikwa open cycle gas turbines from diesel to gas-fired facilities, and the development of a 3,000 megawatt gas-to-power plant. The strategy also addresses the mitigation of the country’s anticipated gas cliff attributed to reduced supply from Mozambique.
Additionally, the strategy promotes regional cooperation across the gas sector, particularly focusing on Mozambique and Namibia. It strives to unlock economic benefits beyond energy generation, promoting the development of natural gas as a chemical feedstock in ammonia, urea, methanol, and diesel production. The strategy aims to support a broad range of sector activities, including mining, agriculture, and transportation.
Source: energycapitalpower.com