South Africa Sets Up LNG Import Unit for Gas-to-Power Program
- Mozambique and Botswana are potential suppliers of gas
- Gas-to-power program to start with 3,126 megawatts of plants
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South Africa is creating a unit to import liquefied natural gas for power plants as suppliers including Cheniere Energy Inc. await fuel tenders for annual shipments of at least 3 million tons.
The Gas Industrialization Unit will initially focus on importing LNG as South Africa seeks to reduce its dependence on coal-fired power, Garth Strachan, a deputy-director general at the Department of Trade and Industry, said Monday in a presentation in Cape Town. Eventually, the unit will also seek to tap domestic sources of natural gas, he said.