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South African industry leaders prepare for accelerated growth

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Hydrocarbon Engineering,

With the gas to power RFI announced in May 2015, the industry is gearing up for a phase of accelerated growth to address the current energy crisis facing South Africa. As the deadline draws closer on 20 July, a mounting interest in the South African gas industry from the international gas community has prompted the announcement of a stakeholder gathering organised by EnergyNet and supported by the IPP Office.

The South African gas industry has all the makings of a profitable gas to power sector amid a global upward trend in the price of LNG averaging 20% growth per year. The IPP Office's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been widely commended for encouraging the accelerated growth of the renewable energy sector in the country and the success of the parallel procurement programme has whet the appetites of the international investment community, who are now actively looking at the South African power sector.

The question now remains: how will the industry shape up? This question will be addressed at the South Africa: Gas Options meeting. The IPP Office will engage directly with industry players (current and future) to discuss core concerns around gas pricing, supply chain development and exclusive insights into the forthcoming RFP. The meeting will facilitate a much desired dialogue between the private and public sector to create the foundations of the industry based on a shared goal of adding megawatts to the South African grid.

With the announcement of the RFP imminent, the gas industry is now actively progressing and project consortiums have started to form. The South Africa: Gas Options meeting will provide an opportunity for participants to engage with all parts of the supply chain and assess the real opportunity presented by the gas to power RFP.

Adapted from press release by Rosalie Starling

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