PwC: Exploration of natural gas has a larger role

By Rob Starr, Content Manager, Big4.com

Professional services firm PwC says the exploration of natural gas in South Africa has the potential to yield fruitful results in the coming years. There has been a shift in emphasis from primary energy resources, such as coal, to alternate forms of energy, in the light of the country’s commitment to sustainable development. Energy supply in the country is largely dependent on coal.

Chris Bredenhann, PwC Energy Leader for Southern Africa comments:

“The market can expect some deals and transactions in the pipeline with the current developments taking place onshore and in neighbouring Mozambique,” he says. “There are also strong indications of a desire to increase the level of natural gas in South Africa’s energy mix from the Government in the wake of recent initiatives.”

According to a recent report released by PwC entitled ‘The gas equation’, various studies have been carried out in the Western Cape to justify the use of gas-fired stations. There are proposals by various companies, such as Forest Oil Exploration, to commercialise gas reserves in the area. Such an initiative will have the advantage of reducing the Western Cape’s dependence on electricity imported from the rest of the country.