Oil and gas

Richards Bay will host a gas power plant.

Sector Insight

Eni has agreed to explore offshore.

The National Energy Regulator of South Africa (Nersa) has approved an application from national utility Eskom to build a 3 000MW gas power station in Richards Bay.

An allocation of 3 126MW to natural gas has been made in the national medium-term energy policy to 2030. The National Department of Mineral Resources and Energy allocated one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme (IPPPP) to Richards Bay, pictured. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub.

Environmental groups have lodged appeals in an attempt to stop the building of the plant, which is a step along the pathway outlined by national government to use gas as a “transitional fuel”, away from fossil fuels towards greener sources of power.

The Port of Richards Bay is investing in new infrastructure. The supply of liquid petroleum gas (LPG) is set to be made much easier and more reliable with the erection of the 22 600-ton Mounded LPG Facility at Richards Bay.

In reaction to the announcement in 2022 by Shell Downstream South Africa and bp Southern Africa of a “spend freeze” and a pause in operations at the SAPREF oil refinery in Durban, the Provincial Government of KwaZulu-Natal intends facilitating meetings with these companies and other interested parties to try to find a way to restart operations at this important facility. The refinery accounts for roughly 35% of the country’s refinery capacity and is likely to be offered for sale.

Online Resources

National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com

Durban’s other oil refinery, Enref, was hit by a fire in December 2020 and there are plans to convert it to a storage facility. South Africa is a net importer of fuel and the Port of Durban handles 80% of South Africa’s fuel imports.The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. Petroleum Agency SA is an agency of the National Department of Mineral Resources and Energy (DMRE) Eni, one of the world’s biggest energy companies, has an agreement with Sasol Petroleum International to explore for hydrocarbons off the coast of KwaZulu-Natal.

Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP). Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines is said to reduce the number of fuel tankers on South African roads by about 60%. ■

Energy

Battery storage has arrived in KwaZulu-Natal.

South Korean company Hyonsung Heavy Industries broke ground at Elandskop in December 2022, signalling the first project in Eskom’s Battery Energy Storage System (BESS) project. The 8MW facility will move to producing an additional 144MW in the second stage of the project.

A study into using solar energy to provide power for the Sundumbili Water Treatment Works in the iLembe District Municipality was conducted through the Vuthela iLembe LED Support Programme. Funded by the Swiss State Secretariat for Economic Affairs (SECO), the study found that the system, estimated to cost just over R5-million to build, would result in savings of about R4.8-million over a nine-year period.

This study is just one of several initiatives regarding energy taking place within the iLembe District Municipality. This was illustrated at a meeting held under the title “Synergy for Energy” hosted by Vuthela iLembe recently. There was interaction between business operators and provincial and municipal officials such as Sibusiso Jali, KwaDukuza Municipality Executive Director: Electrical Engineering Business Unit, pictured. Moves to improve the efficiency of the electricity supply to the coastal areas are starting to take shape was one of the conclusions, but stronger collaboration between the public and private sector is needed to secure reliable power.

Several alternative-energy options are being considered by the public and private sector to produce additional power. These include using waste heat generated by industry and biomass fuels using waste from forestry and natural gas.

Also in the district, an open-cycle gas turbine plant at Shakaskraal can be converted to gas-fired technology, a method which energy planners are encouraging. The 670MW plant came on stream in 2017. Its project company, Avon Peaking Power, is jointly owned by a community trust, Mitsui (Japan), Legend Power Solutions (South Africa) and ENGIE of France.

As part of the provincial government’s strategy to boost regional development, the iLembe District has been named as an Industrial Economic Hub (IEH) for the renewable energy sector.

The eThekwini Metropolitan Municipality has entered the

Online Resources

National Department of Energy: www.energy.gov.za

South African National Energy Development Institute: www.sanedi.org.za iLembe District Municipality is taking action on energy. field of renewable energy provision with the publication of its eThekwini Integrated Resource Plan (EIRP). This document outlines the steps the city will take towards its cleaner energy goals.

Illovo Sugar SA is keen to produce biofuel and bioenergy and at the company’s Eswatini mill, Ubombo, it has a commercial supply agreement with the Eswatini Electricity Company.

Biomass technology is at the centre of the conversion scheme of South African Breweries at its Prospecton plant south of Durban. Methane-gas emissions from a nearby effluent plant are piped to the plant where they are converted to electricity. ■