PetroSA has been investigating the possibility of importing LNG to supplement dwindling gas reserves at the company’s Gas-to-Liquids (GTL) refinery in Mossel Bay. The project has previously encountered various challenges, among them its commercial viability.
The company’s revised proposal involves the importation of LNG into Mossel Bay through a Floating LNG facility (FLNG). The FLNG comprises a breakwater and berth structure allowing a permanently moored Floating, Storage and Re-gasification Unit (FSRU) to discharge vaporised LNG into a sub-sea and an overland pipeline leading to the Mossel Bay Gas-to-Liquids (GTL) Refinery.
The feasibility study will assess the technical and economic characteristics of various sites, taking into account socio-environmental issues. The FEED phase will develop the designs for the preferred sites to a sufficient level of detail to accurately estimate the project costs and economics to make a final investment decision during the second half of 2013.
WorleyParsons is considered a world leader in the design and development of LNG import facilities, having completed more than 10 similar projects in various countries around the world.
“We have some of our best international experts working with our local South African project team to deliver a world-class design for PetroSA,” said Mr Greg Denton, CEO of WorleyParsons RSA.
Establishing the know-how and expertise in the design and construction of LNG facilities in South Africa is essential in order to realize the full economic benefits of lower LNG prices and the recent gas discoveries off the east coast of Africa.
The Group CEO of PetroSA, Ms Nosizwe Nokwe-Macamo, said the establishment of an LNG facility in Mossel Bay is of critical importance for the sustainability of the company’s GTL Refinery.
"The LNG project will allow additional time for sourcing further feedstock through either further indigenous production, nearby sources of production or additional LNG. Employment levels at the refinery and PetroSA’s contribution to the economy of the Southern Cape and the country will be maintained. This will see our GTL Refinery continuing to produce liquid petroleum fuels, thus contributing to security of fuel supply for the country,” Ms Nokwe-Macamo said.