Gas investment and Powership Briefing Note June 2021

Under the guise of ‘Risk Mitigation’, the Department of Mineral Resources and Energy (DMRE) is pushing

20-year electricity supply contracts for South Africa (SA) to import Liquified Natural Gas (LNG).

Source: AMPs webinar presentation, 8 October 2020 (Reference 26)

FES-SA and Project90 were prompted to develop a briefing paper when we read that Deputy President Mabuza had told the SA Parliament that proposed procurement of electricity generation capacity from Karpowerships would result in lower electricity tariffs for South Africans, without any explanation and despite extensive independent analysis indicating otherwise.

This is a briefing for the general public and our representatives that sketches the context of the electricity supply ‘Risk Mitigation’ programme being used to spearhead the importation of liquified natural gas (LNG) and puts into perspective the claims regarding purported merits of natural gas for South Africa, in simple language and with extensive references to more technical analysis.

While the contracting of Karpowerships under the DMRE’s ‘Risk Mitigation’ programme is being challenged on various grounds, this briefing focuses on the bigger picture, including the strategic significance of our electricity system being used as the anchor customer for a major fossil gas investment and infrastructure development programme that defies our international commitments to addressing climate change. Click here to download the briefing paper. 


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