The development of liquefied natural gas (LNG) could help transform the South African economy, spur re-industrialisation, reduce the country’s over-reliance on coal-fired power stations, and contribute to increased regional trade.



South Africa has in recent years run into electricity shortages, forcing the country’s utility to&nbsp;burn expensive diesel&nbsp;to keep the lights on. A major polluter, the country also relies on coal to generate almost 90% of electricity. 



On top of this, South Africa has&nbsp;lost&nbsp;its manufacturing competitive edge, which was built on relatively cheap electricity and behind protective trade walls. Electricity prices have increased substantially over the past decade to pay for the power utility Eskom’s two new coal-fired power stations.



READ MORE | <a href="https://www.forbesafrica.com/focus/2019/07/02/south-africans-love-martyrs/" target="_blank" rel="noreferrer noopener" aria-label="‘South Africans Love Martyrs’ (opens in a new tab)">‘South Africans Love Martyrs’</a>



Liquefied natural gas could change South Africa’s fortunes. And government recognises this. Policy developments in recent years have factored in an increasingly greater role for liquefied natural gas in the country’s energy mix and the overall economy, both as a clean alternative energy source and as a spur to industrial development.



The&nbsp;southern African region, specifically Mozambique which already has a pipeline to South Africa, could be the major supplier of gas to South Africa.



In my recent&nbsp;research&nbsp;I argue that to develop a liquefied natural gas sector South Africa could re-purpose existing institutions, namely those relating to the country’s established liquid fuels industry.



The research traced the evolution of gas developments in the country from 1998 to 2018. It found a close interaction between the electric and the liquid fuels sectors. At present gas contributes about 3% to the country’s primary energy mix, but there are indications that it will feature more prominently over the next decade.



READ MORE | <a rel="noreferrer noopener" aria-label="Oil Major Total Plans Biggest Exploration Drive in Years (opens in a new tab)" href="https://www.forbesafrica.com/current-affairs/2019/01/29/oil-major-total-plans-biggest-exploration-drive-in-years/" target="_blank">Oil Major Total Plans Biggest Exploration Drive in Years</a>



There are&nbsp;number of reasons&nbsp;for pursuing gas. They include:



<ul><li>energy diversification and security to reduce the country’s dependence on coal for electricity;</li><li>reduction of Green House Gas emissions;</li><li>provision of flexibility to the introduction of renewable generation into the electricity grid; and</li><li>facilitating the development of provincial industrial hubs and regional trade within the Southern African Development Community.</li></ul>



<h4 class="wp-block-heading">Three phases of gas development</h4>



South Africa’s history with gas can be delineated into three periods. Firstly, from 1998-2005, South Africa significantly reformed its energy sector. This included the&nbsp;1998&nbsp;white paper on energy, which recognised natural gas as an option to diversify the country’s energy mix. In 2001 the&nbsp;Gas Act&nbsp;was implemented, facilitating the development of gas infrastructure in the country through pipelines and the regulatory framework.



Significantly, in 2004, a pipeline between Mozambique and South Africa began pumping gas. Sasol, a dominant player in the country’s liquid fuels industry, was behind the 865 km gas pipeline. While the majority of gas transported through the pipeline goes to Sasol, the pipeline has nonetheless created demand to around 370 industrial and commercial customers via 530 off-take points.



READ MORE | <a rel="noreferrer noopener" aria-label="Renewable Power Surge In Africa Faces A Shortout: Not Enough Workers (opens in a new tab)" href="https://www.forbesafrica.com/focus/2019/01/31/renewable-power-surge-in-africa-faces-a-shortout-not-enough-workers/" target="_blank">Renewable Power Surge In Africa Faces A Shortout: Not Enough Workers</a>



The second phase covers 2006 &#8211; 2012. This is when gas started to feature more strongly in South Africa’s energy policy. A few turning points occurred. One was the substantial&nbsp;shale gas potential&nbsp;reported by the United States energy information agency. This encouraged policy makers to include gas into the energy mix. Second, natural gas discoveries in&nbsp;Mozambique&nbsp;and Tanzania raised the potential for regional trade.



Thirdly, South Africa experienced an electricity crisis, culminating in blackouts in 2008. In response, the state power utility Eskom turned to the costly diesel&nbsp;Open Cycle Gas Turbines. But this was hugely expensive and Eskom burnt through its operating budgets to ensure a steady supply of electricity.



<h4 class="wp-block-heading">Global trends: the main driver</h4>



During the third phase, from 2013 to 2018, gas development started to gain momentum driven by major global trends. These include the trend toward&nbsp;liquefaction of gas&nbsp;which enabled transportation of gas to places where pipelines weren’t possible.



Secondly, gas prices began changing from long-term to short-term contracts. This opened up the trading of gas to a competitive, spot market. As a result, new buyers have been attracted into the sector.



Thus, by 2015, the Department of Energy had announced the Gas Independent Power Producers Procurement Programme (Gas I4P) with a procurement of 3.7 GW electricity generation.



READ MORE | <a rel="noreferrer noopener" aria-label="Private Wealth: Banking On Climate Change In Africa (opens in a new tab)" href="https://www.forbesafrica.com/wealth/2019/07/15/private-wealth-banking-on-climate-change-in-africa/" target="_blank">Private Wealth: Banking On Climate Change In Africa</a>



By August 2018 the country’s draft integrated resources plan had gas playing a significant role in future electricity generation. The indications were that gas would contribute as much as 15% of the installed capacity&nbsp;mix by 2030. This seems to suggest that energy policy makers believe gas to power has the necessary fit, form and compatibility with the electricity system.



Another factor that’s driven interest in gas is the belief that it could be the country’s next commodity resource, as the country’s mining future is in decline. Some actors in the oil and gas community are pushing for the country’s mining skills to be used in the gas sector. This is informed by the view that the exploration and drilling skills used in the gas fields are similar to those used in mining.



<h4 class="wp-block-heading">The future</h4>



South Africa’s existing institutional infrastructure can be used to develop the liquefied natural gas industry. That won’t be an easy task. There are major efforts required to amend the Gas Act, the Ports Act, Mineral and Petroleum Resources Development Act, and the Electricity Regulations Act, in order to accommodate the LNG initiative.



Gas can also play an important role in the restructuring of the electricity system. As there are trend towards transactive energy, where utilities moves towards customer centric demand, in that grids become less passive and deterministic, and more active and stochastic. Here gas could play a crucial role, as it has features which are flexible and modular enabling a decentralised system. Lastly, there are opportunities for gas as potential feed-stock in industrial processes, which requires strategic reassessment of existing industries.



-Marie Blanche Ting; Doctoral researcher, University of Sussex



-The Conversation 



<img loading="lazy" decoding="async" src="https://counter.theconversation.com/content/118726/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important" />

gettyimages-1141662662-170667a

How Liquefied Natural Gas Could Change South Africa’s Fortunes

The new BMW X5 M50d awaits at the carpark of Richards Bay Airport in South Africa. I am to drive it to Mozambique, and it’s an estimated three-and-half-hour’s road-trip to the nearest border. I have always flown to Mozambique. Let the fun and games of driving begin.
This beauty on wheels has a lively, modern diesel engine with road prowess. My suitcases are loaded into the spacious boot. After hours of driving, I arrive at the Kosi Bay Border post. I point north, and the vehicle is about to embark on a journey out of its norm, away from the city streets.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-6156" src="/wp-content/uploads/2017/05/FWA-2014-Apr-May-056-MOTORING-BMW-X5-MK-002-300x200.jpg" alt="" width="300" height="200" />
The off-road journey, though not on the toughest terrain, is quite sandy. The distance of 21 kilometers seems short on paper, but given the roads, it will take a while. I navigate deep into Mozambique, passing small villages along the way.
Only a few hours ago, the BMW X5 M50d had passed the test of being driven on the tar and gravel roads of northern KwaZulu-Natal with flying colors.
It had displayed magnificent road attitude and handled the open road like a big sedan. The vehicle sticks to the road like a dog to a bone.
It is a driver-oriented vehicle that instils confidence in the driver with its well-mannered suspension.
Driven by the 3.0-liter tri-turbocharged engine that pumps out 280kW of power, this X5 loves the road. Just push your foot against the the accelerator and see.
&nbsp;

Heels On  Wheels

It’s no secret that Porsche remains one of the most profitable car companies and when you understand the DNA of the company, it makes sense. Ironic as it may appear, I’ve chosen to demonstrate this by using the most unlikely candidate of the range: the new Porsche Cayenne S V8 Diesel.
The new generation of Porsche Cayenne differs greatly from the inaugural SUV. The car has adopted a safer design and is more at home within the wider Porsche family range. It is one of the better looking SUVs on the road, but perhaps not from a macho viewpoint, like a Land Rover Discovery or Toyota Prado. In true Porsche spirit, form follows function. The sharp bonnet, slimmed flanks and flowing mirror design hint at the fact that  it was designed to be a sports car, and the rear spoiler pays homage to the iconic and jaw-dropping Carrera GT—all this for an SUV.
Although you would never guess it judging from the outside, the Porsche Cayenne is larger than its predecessor. From the inside, your guess would change, as the airy cabin provides ample space, especially for rear seat passengers. The rear seats can be moved forward or dropped to reveal a cavernous 1,336dm3 of load space. The cabin is typical of Porsche, with solid metal pieces and inserts for door handles, seat controls and air vent surrounds. The control panel rises to meet your hand, very much like the Panamera models. As beautiful as the design is, the ergonomics are spot-on with everything simply laid out and easy to use.
What must be stressed with the Porsche Cayenne S and other Porsche models, is the extent to which the owner can tailor the car to suit their taste. This so-called Porsche Exclusive experience allows for the personalization of each car. Most brands provide a list of exterior and interior appointments from which to choose, but Porsche allows you to craft your own unique Cayenne with options not commonly found on brochures. Think embossed seats and armrests in your own name; backlit doorsills or outrageous paint schemes, such as painting the inside lining of the wheels. Imagine it and Porsche will do it. Of course, this exclusivity comes at a cost because vanity has a price tag.
The jewel of the Cayenne S Diesel is the 4.2 liter twin-turbo V8 engine. With a whopping 850Nm and 281kW torque, it is the most powerful diesel engine in its class and is superb. It will outperform and outgun most cars. The time it takes to accelerate from 0-100km/h (5.7 seconds) shouldn’t be relevant in this type of car, but it is because it’s a Porsche after all. It is a beast to drive especially when you have the optional PASM (Porsche Active Suspension Management) system in Sport mode. This electronic damping control system makes the car run like a sports car. It is planted, surefooted and composed, even in the most dire of circumstances. Another option is the Porsche Torque Vectoring (PTV) system that enhances the overall dynamics of the car by varying the torque to the engine and chassis to optimize handling. It’s brilliant when you consider that this is still an SUV that weighs more than two tons.
In Normal mode the car is everything you would expect in the way of comfort and road manners. I found the ride a little harder than the likes of a Mercedes-Benz ML, but not uncomfortably so. The model I test drove was fitted with 20-inch wheels, which would affect the ride to some degree. It’s a car that is as at home in comfortable driving situations as it is when driven with a bit of gusto.
That being said, the off-road capabilities would come into question when considering its sporty dynamics and impeccable road holding. While less than 10% of Porsche Cayenne owners use their cars in serious off-road conditions, that hasn’t stopped Porsche from producing a car that is as capable off the road as it is on.
This car is packed with off-road ability and Porsche has made it as easy to use as all the car’s other features. You can raise the ride height; engage Off-Road mode and Hill Descent Control (HDC) with just a few clicks of the rocker switch on the console. The immense torque will do all the heavy lifting and the system distributes the most power to the wheels with the most traction. I’ve tested all of the Porsche Cayenne models in serious off-road situations and I was genuinely impressed with its prowess.
The Porsche Cayenne S V8 Diesel costs around $96,000 and is good value for money. This particular car is the pick of the entire range but it must also be a consideration across all other SUV brands. It is Porsche South Africa’s best-selling model with more than 110 sold every month.
The car remains true to the traditional sports car enthusiasts but also lures many of the non-traditionalists. It’s flanked by a classy and personal ownership experience and is backed by an impressive piece of engineering.

Tag: Diesel

FORBES AFRICA SOCIAL MEDIA

How Liquefied Natural Gas Could Change South Africa’s Fortunes

Heels On Wheels

A Family Car That Packs A Punch