Lack of infrastructure
is currently the biggest
stumbling block in the
development of a gas
economy in South Africa.
According to Nick
Mitchell, COO of Renergen,
an integrated alternative and
renewable energy business
that owns the country’s
first and only onshore gas
production licence at Tetra 4
in the Free State, there is still
a lot of scepticism about gas
in the country, but it offers
very real benefits.
“It is undoubtedly a
cleaner form of energy and
the decision by the Industrial
Development Corporation
(IDC) to loan Tetra 4 R218m
for its expansion project
demonstrates government’s
support for natural gas,”
he said. “The gas economy
will arrive. Everyone has a
different timeline but gas,
we believe, is here to stay.”
He said players in the field
had to be prepared to invest
in their own infrastructure
as this was possibly one of
the biggest stumbling blocks.
“We have had to invest
hugely in infrastructure but
also in teaching the market
what gas can do and how it
can be a game changer in the
country.”
He said Tetra 4 had
changed the way onshore
production operated and
was proving not only that it
was a viable option in South
Africa but for sub-Saharan
Africa.
“Gas offers the energy
market reliable, cleaner
and cheaper fuel. A 90%
reduction in emissions is just
one of the gains.”
According to Mitchell the
expansion of Tetra 4 will
allow the company to expand
its reach and offer gas as a
viable fuel option to more
logistics companies.
