African Business 2020 edition

attributed to Transnet’s chief business development
officer, Gert de Beer, on Transnet’s support and
commitment of resources to the LNG hub intended for
Coega,” says Ncemane.
The Coega SEZ has world-class infrastructure; it has
prime and serviced land that is available to host key
gas-to-power projects with spin-offs for other sectors.
In addition, the approved Coega Infrastructure Master
Plan is in place. It defines the services corridor from
the LNG project site to Dedisa substation as well as
good access via the National Road (N2) and ancillary
road network.
The short-term outlook is to import liquefied natural
gas to trigger the gas economy, which would stimulate
the exploration and production of indigenous gas
resources in the Eastern Cape.
The case for the Eastern Cape
The significance of the Eastern Cape is that it is
endowed with the possibility of both onshore and
offshore gas, gas-driven power generation, and gas
importation, handling, transshipment infrastructure as
well as industrialisation. Potential recoverable quantities
of indigenous natural gas are in the order of 20-trillion
cubic feet onshore (shale gas), and 26-trillion cubic feet
offshore.
The recent deep water drilling in Brulpadda
(approximately one billion barrels) in the Southern
Outeniqua basin could potentially unlock enough fuel
to supply South Africa’s refineries for almost four years.
It has the potential to unlock a value chain of marine
maritime services located at Coega SEZ, which could
in turn trigger opportunities eastwards and small
harbours along the Wild Coast. In line with South
Africa’s developmental programme, indigenous gas
extracted in this province must be beneficiated within
the country’s shores, maximising the economic benefit
yield within the region.
The Eastern Cape, through the department of
economic development, environmental affairs and
tourism (DEDEAT) has provided various gas support
initiatives organised in a coherent framework and is
well positioned to drive enablers for a gas economy.
DEDEAT has initiated a strategic framing process for
the provincial oil, gas and maritime complex, which has
provided much impetus, clarity and support for the
socio-economic development of the gas industry.
At the Coega SEZ, within the energy sector, there are a
multitude of operational investors, as a demonstration
of the hard work, efforts and opportunities available in
the Eastern Cape.
Some of the projects include:
• Dedisa Peaking Power Plant (Zone 13) – the
342MW Peaking Power Plant, located in the
Coega Special Economic Zone, is a R3.5-billion
foreign direct investment. The project has been
operational since September 2015 and created
around 1 500 jobs during its construction phase.
• Wind Tower Manufacturing (Zone 3) – wind
tower assembling plant, a R310-million investment
located at the Coega SEZ, which created 390 jobs
during construction.
• Lay Down Area (Port precinct / Zone 1) –
abnormal cargo related to the Renewable Energy
Power Producer Procurement Programme
(logistics). This is a R9-million investment that has
contributed to the distribution of wind turbines
throughout the EC.
• A Renewable Energy project – The first commercial
wind turbine in South Africa, valued at R1.2 billion.
In the 20 years since its establishment in 1999, the
Coega SEZ has become one of the leading SEZs in
Africa, as a gateway to African and world markets,
a transshipment hub and Southern Africa’s most
successful SEZ. To date, the CDC has delivered on
its mandate to provide socio-economic development
for the Eastern Cape, by enabling the creation of
over 120 000 accumulative jobs since inception,
with 45 operational investors, who have invested
R11.579-billion in private sector investment and
R9.53-billion in foreign direct investment. The CDC has
also trained over 100 000 people since its inception.
For investors who wish to take
advantage of opportunities in the
energy sector, please contact, Sandisiwe
Ncemane on:
E-mail: sandisiwe.ncemane@coega.co.za
Telephone: +27 41 403 0630
Fax: +27 41 403 0401
CELEBRATING
“In the broader perspective, the LNG hub at the Coega
SEZ is perfectly located as it opens up a gas corridor
1999-2019
towards the East and West coasts, and is a response to
the recently gazetted South African Integrated Resource
Plan (IRP2019), which makes provision for additional www.coega.co.za
3 AFRICAN BUSINESS 2020
1 000MW gas driven power by 2024,” adds Ncemane.
ISO 20000-1:2011 ISO 27001:2013
OF EXCELLENCE
ISO 9001:2015 ISO 14001:2015 ISO 45001:2018