Gigajoule Africa has submitted a license application to the National Energy Regulator of South Africa for the supply, transmission, distribution and trading of gas in the Cape West Coast region.
Two supply options are being considered: the sourcing of marine compressed natural gas (CNG) from the Kudu gas field in Namibia, where the field joint venture partners are currently evaluating a development scheme for transporting the gas by marine CNG vessel to an offshore delivery point along the West Coast.
The second supply option is to obtain LNG from international LNG portfolio suppliers and delivering it to an offshore delivery point along the West Coast.
Gigajoule recently signed a Memorandum of Understanding with operator of the Kudu field, Tullow Kudu, in order to work together to establish the technical and commercial viability for the supply of CNG from the field.
Gigajoule Africa managing director Johan de Vos said that it is envisaged the project will be developed in phases. The first phase will involve the construction of an offshore submerged terminal, an onshore gas treatment plant, and 225 km of transmission and distribution pipelines to feed the gas to the Cape West Coast markets.
The second phase includes the construction of a pipeline to the north and east to supply customers in the Saldanha Bay and inland region.
The Kudu gas field has 1P gas reserves of 1 Tcf, which is expected to deliver CNG to the West Coast region and Namibian market for at least a decade. Gigajoule has said that gas supply could commence as early as 2014.
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