South Africa is planning a new $3 billion liquefied natural gas plant for the port of Durban. The global commodity trader Vitol is backing a consortium that wants to build the power station and import facility, Reuters reported.
South Africa still generates three-quarters of its energy from coal, but is trying to reduce its dependence on the fuel in a move toward net zero by 2050.
With around 40% of the population still lacking reliable access to electricity at home, however, the government still views gas as an important part of the energy mix. “Using Africa’s sizable untapped gas reserves to help electrify the continent is reasonable and fair, despite the need to cut emissions,” a senior fellow at the Atlantic Council’s Africa Center argued recently, saying gas could “provide part of the solution by supporting renewable energy in boosting electrification rates.”
Other experts have argued that the country should not pursue another fossil fuel which is not clean energy and instead focus on solar, wind, and green hydrogen.